DCC PLC Acquisition of Danish Assets from Couche-Tard (0371T)
March 23 2016 - 7:14AM
UK Regulatory
TIDMDCC
RNS Number : 0371T
DCC PLC
23 March 2016
STOCK EXCHANGE ANNOUNCEMENT
23 March 2016
DCC Energy agrees to acquire Danish oil distribution and retail
assets from Alimentation Couche-Tard
DCC plc, the international sales, marketing, distribution and
business support services group, has reached agreement with
Alimentation Couche-Tard Inc. ("Couche-Tard") to acquire a
commercial, aviation and retail fuels business in Denmark,
substantially formerly owned by Shell. The business comprises the
remedy package resulting from the purchase by Couche-Tard of
Shell's downstream marketing operations in Denmark, agreed in March
2015. The completion of the acquisition of the remedy package by
DCC is conditional, inter alia, on EC competition clearance. The
transaction is expected to complete in the second half of calendar
2016, after the relevant clearances have been received.
The acquisition will comprise Shell's commercial and aviation
distribution business in Denmark and a 139 site retail petrol
station network (comprising 95 manned and 44 unmanned sites) and
contracts to supply 66 dealers. DCC will also enter into a long
term brand partnership with Shell to operate the network under the
Shell brand. The transaction will require a total investment by DCC
of approximately DKK300 million (GBP30 million). The business will
be merged with DCC's existing oil distribution business in Denmark
and will leverage DCC's newly developed retail operating
platform.
The acquired business will have total incremental volumes of
approximately 0.9 billion litres and is expected to generate an
initial return on invested capital commensurate with DCC's Energy's
existing returns.
Tommy Breen, Chief Executive of DCC plc, said today:
"This acquisition will significantly strengthen our business in
Denmark, as well as further develop our presence in the retail
market for transport fuels, following our previous acquisitions in
the European retail petrol station market in Sweden and
France."
For Reference:
Donal Murphy, Managing Director, DCC Energy
Fergal O'Dwyer, Chief Financial Officer, DCC plc
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
March 23, 2016 07:14 ET (11:14 GMT)
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