World Fuel Services announces acquisitions
World Fuel Services Corporation announced that a wholly-owned subsidiary of the company has signed definitive agreements to acquire two U.S. land fuel distributors: PAPCO, Inc., which services retail, commercial and industrial customers with fuel, price-risk management products, and fleet card solutions throughout the Mid-Atlantic region of the United States and Associated Petroleum Products, Inc., (APP) which provides fuel and related services to agricultural, automotive, construction, and commercial and industrial customers in the Pacific Northwest.
The aggregate purchase price for both companies will be approximately USD 230 million and will be funded through the company’s existing credit facilities.
The transactions are subject to customary closing conditions and are expected to be completed within the next 45 days.
PAPCO is headquartered in Virginia Beach, Va., with 150 employees and 2015 revenue of USD1 billion. Associated Petroleum Products, Inc. is headquartered in Tacoma, Wa., with 275 employees and 2015 revenue of USD 600 million.
Both are leading distributors of gasoline, diesel fuel, lubricants, propane and related services in their respective regions.
“The acquisitions of PAPCO and APP significantly expand our geographic reach and supply and distribution capabilities, while further strengthening our commercial and industrial distribution platform in the United States,” said Michael J. Kasbar, chairman and chief executive officer of World Fuel Services.
“We are pleased to have these two industry-leading companies, established management teams and enthusiastic employees, join World Fuel. This transaction expands our extensive supply relationships and product offerings as we continue to grow our diversified business,” said Michael Crosby, executive vice president, global land for World Fuel Services.
Headquartered in Miami, Fla., World Fuel Services is a global leader in the downstream marketing and financing of aviation, marine and land fuel products and related services.
