BP announced today that DCC plc, the sales, marketing, distribution and business support services group, has agreed to buy its liquefied petroleum gas (LPG) distribution business in the UK.
BP is retaining its automotive LPG business which will move into BP’s UK Fuels Value Chain, which runs the company’s fuels business including service stations.
The total consideration payable by DCC is $63m (£40.5 m) on a cash free/debt free basis, to be satisfied in cash at completion.
BP’s UK LPG business supplies a wide 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).
The sale of the UK business to DCC follows 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, Portugal, Austria, Poland, Netherlands, Belgium, Turkey, China, and South Africa.
Tufan Erginbilgic, BP chief operating officer, 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.”