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Specialist yacht fuel supplier, Deuxmil Marine Plc has conditionally agreed to acquire YCO S.A.M, a Monaco-based service provider to ocean-going super yachts for 15 million euros.

The acquisition, which was first announced in April, is composed of a 9 million euro cash payment plus share issue. The company plans to raise 8.2 million euros via a placing of 16,734,694 new ordinary shares at 49p per share which will be used to fund the purchase and cover costs.

The deal, which will see the company change its name to YCO Deuxmil, constitutes a reverse take-over under the AIM Rules, so requires the approval of shareholders at the General Meeting.

In a company statement Deuxmil said the purchase of YCO would enable the company 'to offer the owners and operators of super yachts a full range of services'.

'This will include managing and supervising the construction of a new super yacht, together with the provision of services and brokering of sales,' Deuxmil in the statement.

Directors Neil Miller and Laurence Milton set up Deuxmil in 2004, each owning 50 per cent of the issued share capital. Specialist yacht bunker supplier YFS, which was formed in 1988 by sole shareholder Michael John, was sold to Deuxmil in February 2005 for a total consideration of £2 million in cash.

On 26 April 2007, YHG Gibraltar was acquired by Deuxmil for £100,000 in cash. On the same date, the company also acquired YHG Mallorca for a total consideration of £400,000, satisfied by £100,000 in cash and the issue of 4,137,931 Ordinary Shares. Both companies provide support services to Super Yachts.

The statement said Deuxmil, through its wholly owned subsidiary YFS, is the world's largest supplier of fuel for Super Yachts. In 2007, it supplied fuel to 303 Super Yachts out of the world fleet totalling approximately 750 Super Yachts. These supplies took place in 152 ports in 60 countries, as well as deliveries to other more remote ports around the world. As a result of its worldwide coverage, YFS has enjoyed an average annual growth (in tonnage) of 10 per cent per annum over the past five years.

The most popular cruising location for Super Yachts is the Mediterranean Sea between the months of March and September, according to Duixmil. Approximately 60 per cent of annual tonnage of fuel provided by the company to Super Yachts is provided in this area during the peak period. The next most popular cruising locations are the West Indies and the Florida coast between the months of October and February.

The directors of Duixmil believe that, following the acquisition of YCO, the enlarged group will not only be the largest supplier of fuel oil but will also provide the most comprehensive range of services to super yachts.