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World Fuel Services Corp to acquire ExxonMobil fuelling operations

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Hydrocarbon Engineering,


World Fuel Services Corporation has announced that a wholly-owned subsidiary of the company has signed a definitive agreement to acquire from certain ExxonMobil affiliates their aviation fuelling operations at 83 airports in Canada, the United Kingdom, Germany, Italy, Australia and New Zealand. Further, an additional three locations in France are expected to be added to the definitive agreement subject to certain required reviews associated with such transaction. The portfolio services the business and commercial aviation sectors and is comprised of certain related on-airport assets and operations. World Fuel will also enter a long term agreement with Imperial Oil to become a wholesale distributor for general aviation fuel in Canada.

The total purchase price, including the French locations, of approximately US$260 million is expected to be fully funded with cash on hand.

The transaction will close in phases, with the majority of locations expected to close during the second half of 2016. The transaction is subject to customary regulatory consents and closing conditions, including securing appropriate third party consents.

“This acquisition represents a strategic expansion of our global aviation network, further embedding us in the supply chain, by acquiring best in class aircraft fuelling operations in multiple key international markets,” stated Michael J. Kasbar, Chairman and CEO of World Fuel Services Corporation.“Our strong cash flow profile should enable us to fund this acquisition with cash on hand, leaving our existing liquidity facilities available to fund organic growth and additional strategic investments,” said Ira M. Birns, Executive Vice President and CFO.

Excluding the impact of one time acquisition-related expenses and amortisation of acquired intangible assets of approximately US$10 million and US$7 million respectively, the transaction, including the French locations, is expected to be US$0.32 to US$0.36 accretive to earnings on a non-GAAP basis in the first 12 months after full completion.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/12022016/world-fuel-services-corp-to-acquire-exxonmobil-fuelling-operations-2466/


 

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