DCC to buy Swedish fuel firm

Dublin-based business services firm DCC is to buy Swedish heating oils and transport fuel firm Swea Energi for €22.7m .

The acquisition is conditional on competition approval from the European Commission but DCC said it hoped the deal would be completed in early 2012.

Swea is the leading distributor of heating oils and transport fuels to domestic, commercial and industrial customers in Sweden, selling approximately 500m litres of oil a year in the country.

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The initial consideration payable on completion for Swea will be SEK205m (€22.7m) on a debt free cash free basis, and will be done in cash, DCC said.

In addition, deferred payment of up to a maximum of SEK60m (€6.6m) would be payable based on Swea's operating profit performance for the twelve months ending 31 March 2013.

In the financial year to 31 December 2010, Swea reported pre-tax profits equivalent to €5.5 million.

DCC chief executive Tommy Breen said the deal marked significant expansion of his firm's oil distribution business in Scandinavia, and built on its 2009 acquisition of Shell's oil distribution business in Denmark.