Irish marketing, distribution and business support services firm DCC Plc (ISE:DCC) said on Friday it had agreed to take over the Benegas liquefied petroleum gas (LPG) distribution business of UK oil and gas major BP Plc (LON:BP).
Under the terms of the deal, DCC will make a cash payment of EUR24.5m (USD31.8m), on a cash-and-debt-free basis, for Netherlands-based BP Gas Nederland BV and the trade and assets of BP’s smaller LPG distribution operation in northern Belgium, both of which trade under the name Benegas.
The purchase of this business comes after DCC bought BP’s British LPG distribution activities as well as the Swedish and Norwegian LPG distribution operations of Statoil Fuel & Retail ASA (OSL:SFR). All three deals will boost the scale and geographic scope of DCC’s LPG activities in Europe, its CEO Tommy Breen said.
The new transaction is seen to close in late 2012 after receiving clearance from the Netherlands Competition Authority.
With headquarters in Putten, the Netherlands, Benegas supplies about 55,000 tonnes of bulk, cylinder and aerosol LPG each year to various industrial, commercial and local clients. The business employs 44 people and as at the end of 2011 had adjusted gross and net tangible operating assets of around EUR15.4m and EUR6.7m, respectively. For that same year it generated an adjusted operating profit of EUR4m.