Tuesday, September 04 10:44:52
Dublin listed business services and fuel distributor, DCC, this morning said it has agreed to buy Statoil Fuel and Retail ASA's LPG (liquid petroleum gas) business, SFR LPG, in Sweden and Norway for an undisclosed sum.
As part of the transaction, DCC will enter into long-term LPG supply contracts with Statoil ASA, the international energy company.
The acquisition is conditional on competition approval from the Swedish and Norwegian competition authorities. It is anticipated that the transaction will complete in late 2012 / early 2013 following competition approval and the separation of SFR LPG from Statoil Fuel & Retail ASA.
SFR LPG is the leading distributor of bulk LPG to industrial and commercial customers in Sweden and Norway. Currently employing 20 staff, SFR LPG sells approximately 260,000 tonnes of LPG per annum, with transport outsourced to third party hauliers. The employees will be transferred with the business. It is planned to re-brand the business as Flogas following completion of the acquisition.
The net tangible fixed assets of SFR LPG at completion together with the net working capital investment required are expected to amount to approximately E11 million.
"The acquisition of Statoil Fuel and Retail's LPG business in Sweden and Norway is an important step in DCC Energy's planned expansion of its LPG business beyond Britain and Ireland. The business holds leading market positions in Sweden and Norway, selling to a broad range of industrial and commercial customers. Together with our existing oil distribution businesses in Denmark and Sweden, this acquisition significantly increases the scale of DCC Energy's activities in Scandinavia," said DCC CEO Tommy Breen.