DCC to buy €28m British fuel firm
SHARES in the industrial conglomerate DCC traded flat yesterday after the company announced plans to buy a fuel distribution company.
Under the terms of the deal, DCC will buy Pace Fuelcare for €27.7m in an all-cash deal.
Pace supplies fuel to independent petrol stations and commercial customers, mostly in southern England. It also has a presence in the domestic consumer market there. Last year, it sold 515 million litres of fuel, employing some 240 employees.
DCC chief executive Tommy Breen pointed to the increase in market share in the UK his company would gain as a result of the acquisition, which is subject to clearance from Britain's Office of Fair Trading.
"The acquisition of Pace Fuelcare will further enhance DCC Energy's oil distribution business in Britain, bringing market share to 15pc," he said.
NCB's Conor Harnett said: "This is a natural fit and should integrate well into DCC's current operations where we expect the group to achieve a 20pc return on capital over the next 18 months, in line with past experiences."
A late rally ensured the stock fell only marginally, closing down 0.1pc at €22.38.