World Fuel Services Corporation to Acquire Western Petroleum Company
August 23 2010 - 8:00AM
Business Wire
World Fuel Services Corporation (NYSE: INT) announced today that
its wholly-owned subsidiary, World Fuel Services, Inc., has signed
a definitive agreement to acquire the capital stock of Western
Petroleum Company (“Western”), including the assets comprising
Western’s wholesale motor fuel distribution business, branded
aviation fuel distribution business and wholesale lubricants
distribution business.
Western, based in Eden Prairie, Minnesota, with 2009 volumes of
more than 500 million gallons of gasoline and diesel fuel and
approximately 100 million gallons of branded aviation fuel, is one
of the nation’s largest independently owned petroleum marketing
companies.
“We are very pleased to welcome the Western team to World Fuel,”
stated Michael J. Kasbar, president and chief operating officer of
World Fuel Services Corporation. “The acquisition of Western is
another significant step in the continued evolution of our land
based fuel business and their branded aviation fuel distribution
business will further expand the breadth of our general aviation
business.”
“We are excited to be joining forces with World Fuel and look
forward to capitalizing on the many growth opportunities in the
marketplace. Our market knowledge combined with World Fuel’s size
and scale will allow us to further expand our value proposition to
a broader base of customers and suppliers,” stated Richard S.
Neville, president of Western.
The purchase price for the transaction will be $95 million which
may be increased by up to an additional $20 million to the extent
that Western’s net assets exceed an agreed target at closing. Up to
$30 million of the purchase price, and up to $10 million of the
additional purchase price, if payable, may be paid, at World Fuel's
option, in the form of World Fuel Services Corporation common
stock, valued based on an agreed trailing average price formula.
World Fuel may be required to issue the common stock if its market
price at the relevant settlement date exceeds the trailing average
trading price by more than an agreed amount. The balance of the
purchase price will be funded through a promissory note and
cash-on-hand.
The transaction, which is expected to be $0.11 to $0.13
accretive to earnings in the first twelve months (assuming that $30
million of World Fuel Services Corporation common stock is issued
to pay the purchase price), is subject to customary closing
conditions and is expected to be completed within the next sixty
days.
About World Fuel Services
Corporation
Headquartered in Miami, Florida, World Fuel Services is a global
leader in the marketing and sale of marine, aviation and land fuel
products, as well as related services. World Fuel Services sells
fuel and delivers services to its clients at more than 6,000
locations in 200 countries, including airports, seaports, tanker
truck loading terminals and other customer storage locations. With
44 strategically located global offices, World Fuel Services offers
its clients a value-added outsource service for the supply, quality
control, logistical support and price risk management of marine,
aviation and land fuel.
The Company’s global team of market makers provides deep domain
expertise in all aspects of marine, aviation and land fuel
management. World Fuel Services’ marine customers include
international container and tanker fleets and time-charter
operators, as well as the United States and foreign governments.
Aviation customers include commercial airlines, cargo carriers and
corporate clientele, as well as the United States and foreign
governments. Land customers include petroleum distributors, retail
petroleum operators, and industrial, commercial and government
accounts. For more information, call 305-428-8000 or visit
http://www.wfscorp.com.
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