BP has agreed to sell its liquefied petroleum gas (LPG) distribution business in the UK to DCC, a sales, marketing, distribution and business support services group.
BP’s LPG distribution business supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout the UK with a fleet of 62 delivery vehicles.
DCC said the footprint of the BP business is highly complementary to Flogas, DCC's existing LPG unit in the UK, which records annual sales volumes of approximately 190,000 tonnes.
Dublin, Ireland-based DCC has agreed to pay €51.3 million for the business, which had net tangible operating assets at 31 December 2011 of approximately €38 million.
Commenting on the deal, Tommy Breen, DCC’s chief executive, said: "DCC is pleased to have reached agreement with BP to acquire its LPG distribution business in Britain. We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities and this transaction will enhance DCC's position as the leading oil and LPG sales, marketing and distribution business in Britain."
Completion of the acquisition is expected to take place at the end of September 2012.