Oil giant BP has announced that DCC, a sales, marketing, distribution and business support services group, has agreed to buy its liquefied petroleum gas (LPG) distribution business in the UK.
DCC will pay $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.
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The sale follows the company'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."
The LPG business supplies a range of industrial, commercial and domestic customers with annual sales of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 employees and operates from 13 locations throughout the UK with a fleet of 62 delivery vehicles (haulage services are principally outsourced).
BP's share price fell 1.28% to 448p by 11:05.
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