GB Oils Ltd. has reached an agreement to acquire Chevrons equity distributor business in the United Kingdom, a 21.9 million (U.S. $40.3 million) deal that includes sales of Texaco-branded lubricants.
The equity distributor business distributes approximately 1 billion liters per year of fuels, heating oils and lubricants to commercial, industrial, agricultural and domestic customers mostly in southern England and Wales.
In announcing the acquisition Aug. 15, GBs parent company, Irish conglomerate DCC plc, said those activities will complement existing operations of DCC Energy, which includes GB.
DCC Energy is already the largest oil distributor in Britain with annualized sales of approximately 3.2 billion liters and a market share of approximately 10 percent, DCC plc Chief Executive Tommy Breen said. The acquisition of the Texaco distribution business will bring significant further scale to DCCs oil distribution business in Britain and is consistent with our strategy of growing our presence in this market.
The equity distribution business operates under several well recognized trade names, including Vectis Oils, Bates & Hunt, Team Flitwick, OJ Williams and Owen Fuels. The transaction, which is expected to be completed during the third quarter of this year, includes a long-term supply agreement that will enable GB to continue using the Texaco brand.
Chevron recently announced plans to phase out the Texaco brand from its commercial and industrial lubricants businesses in the United States and Canada, but it will continue to use the name in its consumer products and retail businesses and overseas.