One of Ireland's biggest firms DCC has reached an agreement with BP to acquire BP's liquefied petroleum gas (LPG) distribution business in Britain.

Completion of the acquisition is expected to take place at the end of September 2012.

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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The total consideration payable by DCC for the Business is €51.3 million on a cash free/debt free basis to be satisfied in cash at completion.

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."

(CD/GK)