Chevron sells Texaco to DCC
Services group DCC said today it has agreed to buy Texaco's fuel distribution business in the UK for €27.5m.
The deal sees DCC's subsidiary GB Oil take over the Texaco operation, which is owned by Chevron UK and delivers around one billion litres of fuel and heating oils to 100,000 customers including homes, business and farms.
Also included are OJ Williams, based in Carmarthen, and Owen Fuels which has its base in Cardiff.
Dublin-based DCC, which will enter into a long-term supply arrangement with Chevron, already sells around 3.2 billion litres of oil per year. The firm's other operations include the distribution of frozen and chilled foods, waste management services and healthcare items.
Chief executive Tommy Breen said: "The acquisition of the Texaco distribution business will bring significant further scale to DCC's oil distribution business in Britain and is consistent with our strategy of growing our presence in this market."
DCC said the profit contribution from the new business, which has 167 road tankers and 365 staff, would be "modest" during the year to March 31, 2009.
That should "improve significantly" however during the next 12 months as the business benefits from DCC's proven experience and management skills, it said.
Completion of the deal should take place by the end of this August, the firm added.
