Industrial services group DCC has reached an agreement to acquire Swedish fuel distributor Swea Energi.

DCC is to pay an initial €22.7 million for the firm, owned by Lennart and Viviann Hansson, and a further consideration of up to €6.6 million based on performance in the period to March 31st, 2013.

Swea is the leading distributor of heating oils and transport fuels to domestic, commercial and industrial customers in Sweden. It employs some 54 staff and sells up to 500 million litres of oil per annum.

Swea generated an operating profit before tax of €5.5 million in 2010.

In a statement to the Irish Stock Exchange, DCC said the acquisition was conditional on competition approval from the European Commission. It expects the deal to go through early next year.

DCC chief executive Tommy Breen said the move marked a “significant expansion” of the group’s oil distribution business.