DCC rises on €22.7m Swedish distributor purchase
SHARES in DCC rose yesterday after the conglomerate said it will buy an oil-distribution business in Sweden.
The group has agreed to acquire Swea Energi for close to €22.7m. DCC said that the move would help expand its European oil-distribution business.
DCC will pay for the Swedish company in cash and will be completed on a "debt-free" basis.
Another €6.6m will be payable based on the company's performance up to the end of March 2013. While the deal is pending competition approval from the European Commission, it is hoped to be completed early next year.
Company chief executive Tommy Breen described the acquisition as a "significant expansion" of its business.
"The acquisition of Swea is a significant expansion of DCC's oil-distribution business in Scandinavia, building on our acquisition of Shell's oil-distribution business in Denmark in 2009," he said.
"With a strong local management team to be led by Lennart Hansson and the benefit of DCC's experience in oil distribution, we look forward to growing Swea in the Swedish market over the coming years and continuing to develop a substantial position in oil distribution in Scandinavia."
Based outside Gothenburg, Swea supplies oil across Sweden. It employs 54 people and had an operating profit before tax last year of €5.5m. DCC closed up 1.09pc at €18.50.