World Fuel Services To Buy Two U.S. Land Fuel Distributors For $230 Mln

(RTTNews) - World Fuel Services Corp. (INT) announced Thursday that its unit has signed definitive agreements to acquire two U.S. land fuel distributors for aggregate purchase price of about $230 million.

The company agreed to buy PAPCO, Inc. and Associated Petroleum Products, Inc., both distributors of gasoline, diesel, lubricants, propane and related services in their respective regions.

PAPCO, with 150 employees, generated 2015 revenue of $1 billion. APP, with 275 employees, generated 2015 revenue of $600 million.

Excluding the impact of one-time acquisition related expenses and amortization of acquired intangible assets, the transactions are expected to be $0.22 to $0.26 accretive to earnings on a Non-GAAP basis in the first twelve months.

The transactions are subject to customary closing conditions and are expected to be completed within the next 45 days.

The purchase price will be funded through the company's existing credit facilities.