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DCC acquires Shell Direct Austria
24th November 2009
Acquisitive Republic of Ireland conglomerate DCC plc has reached conditional agreement to acquire the operations of Shell Direct Austria GmbH from Shell Austria.
Shell Direct sells approximately 630 million litres of transport fuels and heating oils to domestic, commercial, agricultural and industrial customers throughout Austria. It is one of the leading fuel distribution businesses in the country with a market share of approximately 11%.
DCC has also agreed to enter into a long term supply arrangement with Shell in Austria and following acquisition, Shell Direct will operate as a Shell branded distributor. The transaction is subject to competition clearance from the European Commission and completion is expected in January 2010.
Shell Direct Austria employs 152 staff and has approximately 60,000 customers. It operates from 18 locations throughout the country, has a fleet of 55 trucks and additionally outsources one third of its deliveries to third party hauliers.
In a statement to the London Stock Exchange, Tommy Breen, Chief Executive of DCC plc said, "The acquisition of SDA is another important step in our strategy to develop DCC Energy in continental Europe. We are pleased that our excellent relationship with Shell has presented this opportunity, which follows our purchase of Shell's oil distribution business in Denmark earlier this year.
"SDA's strong management team and its extensive operational infrastructure, together with DCC's experience in profitably managing and developing local oil distribution businesses, provide an excellent platform for growing this business in Austria over the coming years."
DCC plc's increasing presence in mainland Europe builds upon its strong position in the British Isles, where it supplies heating oil to customers under a number of brands including Bayfords, Carlton Fuels, CPL Petroleum, Emo Oil, Shell and Texaco.
