DCC Continues Expansion in UK

Business support services firm DCC has acquired oil distribution company Bayford Oil, it has announced.

The cash consideration for the business, net of average cash acquired, was £22.5m (€24.7m).  Operating from 14 locations, principally in the North of England, Bayford Oil comprises of a fleet of 60 road tankers and employs 155 people.

Bayford Oil sold 468 million litres of oil in the year ended June 30, 2009. This comprised 313 million litres of transport and heating fuels sold to a broad range of domestic, commercial, agricultural and transport customers and 155 million litres of petrol and diesel sold to independent dealer owned petrol stations which trade under the ‘Gulf’ brand.

The adjusted operating profit of Bayford Oil for the year ended June 30, 2009 was £3.5m (€3.9m).  “The acquisition of Bayford Oil (which adds approximately 12% to DCC’s annualised oil volumes in Britain) represents a further step in DCC’s continuing strategy of consolidating the fragmented oil distribution business in Britain,” said DCC chief executive Tommy Breen.  “It will strengthen DCC’s position in the North of England and significantly increase our business in supplying the independent retail petrol station market.

“DCC has an excellent record of achieving significant operating synergies from its recent acquisitions in the UK oil distribution business and we believe that the acquisition of Bayford Oil will prove no exception in this regard.”

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