Ireland’s DCC has agreed to acquire from Statoil Fuel & Retail the trade, fixed assets, stock and goodwill of its industrial LPG business in Sweden and Norway.
As part of the transaction, DCC will enter into long-term LPG supply contracts with Statoil, the international energy company.
Statoil Fuel & Retail LPG (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 €11 million.
Tommy Breen, DCC’s CEO, said: "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."
The acquisition of Statoil Fuel & Retail's industrial LPG business is conditional upon competition approval from the Swedish and Norwegian competition authorities. It is anticipated that the transaction will complete in late 2012/early 2013.
