Ireland-headquartered DCC Plc (DCC.L) Friday announced that it has signed a conditional agreement with BP Plc (BP: Quote, BP_UN.TO,BP.L) to buy its liquefied petroleum gas or LPG distribution business in the Netherlands and Belgium for 24.5 million euros, on a cash free/debt free basis, to be satisfied in cash at completion.
DCC, which provides sales, marketing, distribution and business support services, will buy BP Gas Nederland BV, along with trade and assets of BP's smaller LPG distribution business in north Belgium, together called Benegas.
As at December 31, 2011, adjusted gross tangible operating assets of Benegas were about 15.4 million euros and adjusted net tangible operating assets were some 6.7 million euros. During 2011, Benegas generated an adjusted operating profit of 4.0 million euros.
The completion of the deal, subject to approval from the Netherlands Competition Authority, is expected in late 2012.
The Benegas acquisition follows DCC's recently announced acquisitions of BP's LPG distribution business in Britain and Statoil Fuel & Retail LPG distribution businesses in Norway and Sweden.
It was on August 8, that DCC agreed to buy BP's LPG distribution business in the UK for $63 million or 40.5 million pounds on a cash free/debt free basis.
On September 4, DCC agreed with Statoil Fuel & Retail ASA to acquire the trade, fixed assets, stock and goodwill of its industrial LPG business in Sweden and Norway. As part of the deal, DCC will enter into long-term LPG supply contracts with energy company, Statoil ASA (STO).
The net tangible fixed assets of Statoil Fuel & Retail LPG, together with net working capital investment required, are expected to be around 11 million euros.
DCC.L is currently trading at 22.14 pence, up 0.39 pence, or 1.79 percent on the LSE.
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by RTT Staff Writer
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