Completion of the acquisition is expected to take place at the end of September 2012.
BP plc (NYSE:BP) has announced that DCC Public Ltd Co (LON:DCC) has agreed to buy its liquefied petroleum gas (LPG) distribution business in the UK. Completion of the acquisition is expected to take place at the end of September 2012.
The total consideration payable by DCC for the Business is $63m (£40.5m) on a cash free/debt free basis to be satisfied in cash at completion.
Under the deal BP will retain its automotive LPG business which will move into BP's UK Fuels Value Chain.
The sale follows the BP's announcement in February that it intended to sell its LPG bottles and tank-filling business, as well as some of its wholesale LPG activities, in the UK and a number of other regions.
Tufan Erginbilgic, BP's Chief Operating Officer of Refining and Marketing, said: "We believe DCC will be able to build on the good portfolio and business we have developed and grow the business further in the best interests of its customers and other stakeholders."
Tommy Breen, Chief Executive of DCC plc, said: "DCC is pleased to have reached agreement with BP to acquire its LPG distribution business in Britain.
"We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities and this transaction will enhance DCC's position as the leading oil and LPG sales, marketing and distribution business in Britain."
The Business supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG.
It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles (haulage services are principally outsourced).
The footprint of the Business is highly complementary to Flogas, DCC's existing LPG business in Britain (which has annual sales volumes of approximately 190,000 tonnes).
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