World Fuel Services Unit To Buy Watson Petroleum Ltd For £117 Mln - Quick Facts

(RTTNews) - Fuel logistics company World Fuel Services Corp.'s (INT) subsidiary has agreed to acquire Watson Petroleum Ltd., a distributor of gasoline, diesel, heating oil, lubricants and other products and related services across England and Wales, for 117 million pounds, or $191 million. The consideration price would be funded via. cash-on-hand and the firm's existing credit facilities.

The transaction is likely to be $0.18 - $0.22 accretive to earnings on a GAAP basis in the first year. Non-GAAP accretion, excluding amortization of acquired intangible assets of about $0.10 per share, is projected to be in the range of $0.28 - $0.32 in the first year. The acquisition is expected to be completed within the next 90 days.

President and Chief Executive of World Fuel Services said: "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."

Headquartered in Brinkworth, England, Watson Petroleum has 670 employees.