Shares in sales, marketing and business services group DCC jumped over 5% in London today after it said it had agreed a £235m deal to buy a petrol station network in Norway from Esso.
Esso Retail Norway is the third largest operator of petrol stations in the country.
It will mean Dublin-based but London-listed DCC's energy subsidiary would have over 1,000 petrol stations across its pan European business.
Esso's retail petrol station network in Norway is made up of a national network of 142 company-operated sites - 127 retail service stations and 15 unmanned stations. It also has contracts to supply 108 Esso-branded dealer owned stations.
Esso Retail Norway sells about 600 million litres of fuel annually.
The acquisition is still subject to regulator approval.
DCC's chief executive Tommy Breen said the deal is another material step for DCC in building its retail petrol station business in Europe.
"From a modest position three years ago, DCC Energy will, following completion, operate over 1,000 retail petrol stations and is ambitious to continue this development. The acquisition is consistent with our aim to operate world-renowned retail fuel brands and be an excellent partner for oil majors," Mr Breen added.
The business will be integrated into DCC's energy unit and DCC will sign a long-term supply agreement with Esso Norge.
DCC, which gets nearly half of its profit from Britain and Ireland, has been expanding into western Europe in recent years through acquisitions.
The company, which has in the past bought assets from oil companies such as Chevron and Total, has been scouting for opportunities to purchase distribution and market assets from oil majors as they slim down their portfolio to ride out an oil price slump.
The Norwegian deal follows DCC's deal in November to buy a 97% stake in French natural gas retail and marketing business, Gaz Europeen, for an enterprise value of €110m.
Meanwhile, the company - whose activities range from oil and food distribution to waste management - also issued a trading statement for the three months to the end of December.
DCC said that group operating profit for its fiscal third quarter was strongly ahead of the previous year and in line with expectations.
"DCC continues to expect that both operating profit and adjusted earnings per share will be significantly ahead of the prior year and in line with current market consensus," the company added.
Breaking down its businesses, DCC said its Energy division recorded strong growth in operating profit, benefitting from very strong organic volume growth in LPG and good organic volume growth in both retail and fuelcard and oil.
It noted that heating-related volumes were in line with expectations, with the milder weather conditions in the UK offset by colder conditions elsewhere.
DCC said its Healthcare division traded in line with expectations and the previous year, benefiting from a strong organic performance from DCC Health & Beauty Solutions.
However, DCC Vital - as expected - was impacted by the trading headwind of the weakness in sterling, particularly in pharma products.
Operating profit in DCC Technology was strongly ahead of the previous year, boosted by the contribution from the CUC acquisition and also from a strong performance from the UK and Irish business which saw good organic growth in the quarter.
The company also said its Environmental division again delivered very strong year on year organic growth, in both Ireland and the UK.
"DCC remains ambitious to continue the growth and development of its business in existing and new geographies and retains a strong, well-funded and liquid balance sheet," the company stated.
