Irish industrial services group DCC has agreed to acquire the Swedish fuel distributor Swea Energi for €22.7 million.
Swea is the leading distributor of heating oils and transport fuels to domestic, commercial and industrial customers in Sweden. Headquartered in Kungsbacka, near Gothenburg, Swea sells approximately 500 million litres of oil per annum to customers throughout Sweden. The company employs a total of 54 staff across a network of seven sales offices with transport outsourced to a number of regional hauliers.
In the financial year to 31 December 2010, Swea generated pre-tax profits of SEK49.6 million (€5.5 million).
Commenting on the news, Tommy Breen, DCC’s chief executive, said: "The acquisition of Swea is a significant expansion of DCC's oil distribution business in Scandinavia, building on our acquisition of Shell's oil distribution business in Denmark in 2009.
“With a strong local management team to be led by Lennart Hansson and the benefit of DCC's experience in oil distribution, we look forward to growing Swea in the Swedish market over the coming years and continuing to develop a substantial position in oil distribution in Scandinavia."
The acquisition is conditional on competition approval from the European Commission. It is anticipated that the transaction will complete in early 2012.
DCC is a sales, marketing, distribution and business support services group, operating across five divisions: energy, IT and entertainment products, healthcare, environmental, and food & beverage. The group currently employs approximately 8,000 people.