World Fuel Services to Acquire Watson Petroleum Limited
World Fuel Services Corporation (NYSE: INT), announced that a wholly-owned subsidiary of the company has signed a definitive agreement to acquire Watson Petroleum Limited, a leading distributor of gasoline, diesel, heating oil, lubricants and other products and related services across England and Wales, for a purchase price of £117 million ($191 million). The purchase price will be funded through cash-on-hand and the company’s existing credit facilities.
Watson Petroleum is headquartered in Brinkworth, England and has 670 employees. With expected 2013 revenue of $2.2 billion, Watson Petroleum is one of the largest fuel distributors in the United Kingdom.
“We look forward to welcoming the Watson Petroleum team to World Fuel Services,” said Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “Combined with our existing land business in the United Kingdom, this transaction will further solidify Watson’s position as one of the largest distributors of ground-based fuels in the United Kingdom and will provide a platform for further growth in the ground fuels space in the United Kingdom and elsewhere in Europe.”
The transaction is expected to be $0.18 to $0.22 accretive to earnings on a GAAP basis in the first twelve months. Non-GAAP accretion, which excludes amortization of acquired intangible assets of approximately $0.10 per share, is expected to be $0.28 to $0.32 in the first twelve months.
The transaction is subject to customary regulatory consents and closing conditions and is expected to be completed within the next ninety days.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services on a worldwide basis. World Fuel Services sells fuel and delivers services to its clients at more than 8,000 locations in more than 200 countries and territories worldwide. More information at: www.wfscorp.com.
Category: Fuel & Oil, General Update
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