DCC to buy Esso’s retail petrol station network in France for €106m
DCC to buy Esso’s retail petrol station network in France for €106m
Pictured: Tommy Breen, chief executive, DCC
DCC plc said today that it has reached agreement to buy Esso SAF’s unmanned retail petrol station network and motorway concessions in France.
The total consideration will be €106m (£84m), plus stock in tank at the date of acquisition, all payable in cash on completion.
The acquisition includes Esso SAF’s network of 274 Esso Express unmanned petrol stations; 48 Esso branded motorway concessions; and contracts to supply around 75 dealer owned dealer operated sites. As part of the transaction, DCC Energy will enter into a long term branded supply agreeement with Esso SAF.
The acquired business will have annual volumes of approximately 1.9 billion litres and revenues of approximately €2.2bn (£1.7bn). DCC said it is expected to generate an initial return on invested capital of approximately 15pc.
On completion of the acquisition, DCC Energy will operate 672 retail service stations across Europe and supply more than 2,000 dealer-owned service stations. On a pro-forma basis, DCC Energy’s product split by volume will be 58pc road transport fuels, 16pc commercial fuels, 16pc heating oil and 10pc LPG.
“The acquisition of Esso SAF Retail will be DCC Energy’s first acquisition in France and the second major acquisition in the European retail petrol station market following the acquisition of Qstar announced in February 2014,” said DCC chief executive Tommy Breen. “It represents a significant further step in DCC’s strategy to build a larger presence in the transport fuels sector and provides DCC with an excellent platform for growth in the French market.”
The company said the deal is subject to EC competition clearance and conclusion of the French Works Council consultation process. It is expected to complete in the first half of 2015.