DCC agrees to pay £40m for BP unit

By GARETH MACKIE
Published on 08/08/2012 22:46

SCOTTISH Fuels owner DCC has agreed to buy BP’s liquefied petroleum gas (LPG) distribution arm for £40.5 million in cash.

The Dublin-based group, which has faced protests in the Western Isles over high fuel prices, expects to complete the deal by the end of next month.

BP’s LPG business sells around 87,000 tonnes of bulk and cylinder fuel a year to companies and households. It employs 116 people across 13 sites in the UK and has a fleet of 62 delivery vehicles.

Yesterday’s deal follows BP’s announcement in February that it planned to sell its bottles and tank-filling LPG businesses, as well as some wholesale activities, in countries including China, Portugal and the UK. However, it will retain its LPG automotive business.

Tufan Erginbilgic, chief operating officer for refining and marketing at the oil giant, said: “We believe DCC will be able to build on the good portfolio and business we have developed and grow the business further in the best interests of its customers and other stakeholders.”

DCC, the second-largest LPG distributor in Britain and Ireland, said the acquisition was a good fit for its Flogas business, which has expanded through acquisitions including Alta Gas in 2001 and British Gas LPG in 2002 and sells around 190,000 tonnes of fuel a year.

Tommy Breen, DCC’s chief executive, said: “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities.”