Business
DCC Energy agrees to acquire Esso Retail Norway
DCC Energy agrees to acquire Esso Retail Norway.
About this update from Dcc Plc
[{"type":"text","content":"\n \nRNS Number : 1627W DCC PLC 07 February 2017 \n\n \n \n7 February 2017\n \nDCC Energy agrees to acquire Esso's retail petrol station network in Norway\n \nDCC plc, the international sales, marketing and business support services group, announces that DCC Energy has reached agreement with Esso Norge AS to acquire its retail petrol station network in Norway for a consideration of NOK 2.43 billion (c. £235 million). The network is the third largest in Norway with approximately 20%1 of retail volumes. \n \nEsso's retail petrol station network in Norway\nEsso's retail petrol station network in Norway comprises a national network of 142 company-operated sites (127 retail service stations and 15 unmanned stations) and has contracts to supply 108 Esso-branded dealer owned stations (together referred to as \"Esso Retail Norway\"). Esso Retail Norway sells c. 600 million litres of fuel annually. The majority of the stations are in the more populous south of the country and, of the 142 company-operated sites, 110 are held freehold, with 32 being leasehold. \n \nAs part of the transaction DCC Energy will enter into long term brand and supply agreements with Esso Norge AS. \n \nSince December 2015, the convenience retail element of the company-operated sites has been operated by NorgesGruppen, the largest grocery retailer and wholesaler in Norway, under a long term agreement. NorgesGruppen have been rolling out their award-winning \"Deli de Luca\" retail concept across the network. \n \nEsso Retail Norway will be integrated into DCC Energy's existing retail IT and operating infrastructure. This infrastructure was developed during 2015 to enable DCC Energy's integration of the Esso France retail business and has operated the business successfully since completion. Importantly, it was designed to be scalable and facilitate a 'hub and spoke' operating model, where key pricing, supply and back office functions can be operated remotely from an operations centre near Dublin, Ireland, enabling the effective and efficient management of the business in conjunction with local management teams. From completion DCC Energy will employ this model for Esso Retail Norway, in conjunction with the local management team who have driven the successful development of the network in re...