DCC IS to buy British oil distribution firm Pace Fuelcare for €27.7 million in cash as part of its expansion into the UK.
The industrial holdings group, which already owns a number of fuel businesses in the UK, said the acquisition would bring its market share to approximately 15 per cent.
“Pace has a particular strength in the distribution of transport fuels in southern England and will be complementary to DCC Energy’s existing business,” DCC chief executive Tommy Breen said.
Pace sold 515 million litres of fuel to independent retail petrol stations and to a range of commercial, industrial, agricultural and domestic customers in its last financial year. The company employs about 240 people and operates from 20 locations across southern England.
The acquisition is subject to clearance from the UK Office of Fair Trading.
DCC was recently forced to issue a statement denying it had inflated bills and “ripped off” oil customers in Britain. The claims were made against DCC’s British oil distribution business GB Oils by the Sunday Times.
GB Oils, which entered the market in 2001, has acquired a number of businesses in the oil distribution sector in Britain, and has continued to sell under national, regional and local brands.
The company said it chose to keep the different names due to “considerable local goodwill associated with the brands”. It also owns price comparison website BoilerJuice.com, which also came in for criticism in the reports.
GB Oils has been the subject of an investigation by Carmarthenshire County Council in Wales into customer complaints concerning GB Oils’ business in south Wales and arise from January last year. However, DCC has denied its business was involved in any fraudulent activity or unfair trading concerning pricing.
