DCC said today it is to buy British fuel distribution company Brogan Holdings for €47.2 million.
The company said this morning it has agreed to acquire the entire issued share capital of the company, which markets fuel cards in Britain under a number of well known brands including BP, Diesel Direct, Shell and Texaco.
"The acquisition of Brogans will further enhance DCC Energy's position as the leading oil distributor in Britain, bringing its market share to approximately 14 per cent, and will also significantly increase the scale of DCC's fuel card operations in Britain," said DCC chief executive Tommy Breen.
"We are confident that the integration of Brogans with DCC's existing oil distribution and fuel card activities will deliver returns on capital broadly commensurate with previous energy acquisitions."
The British firm sold 447 million litres of fuel in its financial year ended May 31st, 2009, with 343 million litres of heating and transport fuels sold to 40,000 domestic, commercial, industrial and agricultural customers. Fuel cards accounted for 104 million litres of motor fuels sold to 10,000 customers.
Operating profits for the year reached €7.9 million on sales of €329 million. Gross tangible operationg assets were €35.3 million, with net assets totalling €5.3 million.
The firm employs 279 people and operates from 15 fuel distribution depots in Scotland and the north of England.
