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DCC plc acquires Brogan Fuels
14th December 2009
Republic of Ireland based DCC plc, has agreed to acquire Brogan Holdings Limited - a leading fuel distribution business with operations in Scotland and Northern England - for £42.5 million.
Brogans, which is headquartered in Motherwell, Lanarkshire, operates from a network of 15 fuel distribution depots in Scotland and the north of England while its fuel card business, also has an office in Canterbury, Kent.
Brogans has a fleet of 87 road tankers and 279 employees. Brogans sold 447 million litres of fuel in its financial year ended 31 May 2009. This comprised 343 million litres of heating and transport fuels sold to a broad range of approximately 40,000 domestic, commercial, industrial and agricultural customers; together with 104 million litres of motor fuels sold through fuel cards. Brogans markets fuel cards under a number of leading brands including BP, Diesel Direct, Shell and Texaco.
Brogans' adjusted operating profit for its financial year ended 31 May 2009 was £7.1 million on sales of £296 million. The company's gross tangible operating assets at 31 May 2009 were £31.8 million and its net tangible operating assets were £4.8 million.
Tommy Breen, Chief Executive of DCC plc, said today, "The acquisition of Brogans will further enhance DCC Energy's position as the leading oil distributor in Britain, bringing its market share to approximately 14%, and will also significantly increase the scale of DCC's fuel card operations in Britain.
"We are confident that the integration of Brogans with DCC's existing oil distribution and fuel card activities will deliver returns on capital broadly commensurate with previous energy acquisitions."
The acquisition of Brogans, builds upon a spate of acquisitions within the domestic heating oil supply sector by the acquisitive Irish group over recent years. DCC's Energy Division sold 5.3 billion litres of product to c. 600,000 domestic, commercial, industrial and agricultural customers from a network of 230 depots located throughout the United Kingdom and Republic of Ireland in 2008/9. The company trades under a variety of brands including Emo Oils, Carlton Fuels, CPL Petroleum, GB Oils and Scottish Fuels and ultimately, aims to secure a 20% share of the UK market.
