Business services group DCC has agreed to pay €27.52m to buy oil giant Chevron's UK distribution division, which operates under the Texaco brand.
The company distributes 1.0 billion litres of fuel and heating oils to around 100,000 commercial, industrial, agricultural and domestic customers.
DCC does not expect its new acquisition to make much of a profit in the first few months, but anticipates a significant improvement by the end of the business year in March 2010.
Chevron Limited UK has 26 depots in England and Wales, a fleet of 167 road tankers and a workforce of 356.
The deal, which should be completed by the end of August, is being done through DCC's subsidiary GB Oils, which will also enter a long-term supply arrangement with Chevron.
Shares in DCC closed up 43 cent at €15.98 in Dublin.
