DCC plc, the sales, marketing, distribution and business support services group, which owns Gulf Retail in the UK, has reached conditional agreement with Rontec Investments – Gerald Ronson’s Snax 24-led consortium – to acquire certain oil distribution assets currently owned by Total in Britain, the Isle of Man and the Channel Islands.

Rontec reached conditional agreement in June 2011 to purchase the distribution assets as part of a larger transaction with Total. DCC’s acquisition is conditional on Rontec completing its transaction with Total, which is expected to take place in late 2011.

The Total businesses included in the deal employ 550 people and sold 1.5bn litres of fuel in 2010, and include:

*The trade, fixed assets, stock and goodwill of Total Butler, a transport, commercial and home heating oil distribution business with sales volumes in 2010 of 670 million litres. Total Butler has a network of 40 depots across England and Wales and a fleet of circa 200 leased delivery vehicles.

*Contracts to supply transport fuels to circa 300 dealer owned dealer operated retail service stations (currently branded Total). Volumes sold under these contracts in 2010 amounted to 710 million litres.

*The entire issued share capital of Total’s oil distribution and retail service station businesses on the Isle of Man and the Channel Islands. In 2010, together these businesses sold 120 million litres of fuel.

The expected total consideration payable by DCC for the businesses, together with the estimated value of stock to be acquired is €67 million (£59 million), and will be satisfied in cash at completion. The goodwill at completion will be approximately €43 million (£37m).

Tommy Breen, chief executive of DCC, said: “This acquisition represents a further significant step forward in DCC’s growth strategy in oil distribution in Britain. It will considerably extend DCC Energy’s presence in England and Wales and will also enhance our ability to serve customers throughout the market.”

The agreement, announced today, coincides with the recently announced acquisition by GB Oils of Pace Fuelcare Ltd, which is still to be ratified by the OFT.

GB Oils Limited, a wholly owned subsidiary of DCC plc, currently supplies fuel to 815 independent UK dealers under brands including Gulf and Texaco. These latest acquisitions will add circa 300 Total, 140 Pace and 100 Power-branded filling stations to its portfolio, making it the UK’s largest independent petrol retailer, with over 1300 outlets.

GB Oils benefits from secure long-term supply arrangements across the UK with over 200 depots and a fleet of over 800 tankers. Its infrastructure, growth strategy and financial strength have already provided the impetus for Gulf to become the fastest growing forecourt brand in the UK.

“This is another very positive step as GB Oils continues to develop and grow its UK forecourt business,” comments Keith Jewers, Director of Retail for GB Oils. “We are improving economies and providing a good fit with our existing operations. We welcome new colleagues and new customers and look forward to working alongside them. Their experience and expertise will be invaluable for the business”.

”It is very much business as usual and we commit our utmost support to all our new customers”.