World Fuel To Buy ExxonMobil's Certain Aviation Fueling Operations For $260 Mln

(RTTNews) - World Fuel Services Corp. (INT) announced Thursday that its unit has signed a definitive agreement to acquire from certain ExxonMobil affiliates their aviation fueling 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 total purchase price, including the French locations, is approximately $260 million. The company expects to fund the deal fully with cash-on-hand.

World Fuel will also enter a long-term agreement with Imperial Oil to become a wholesale distributor for general aviation fuel in Canada.

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.

Excluding the impact of one-time acquisition-related expenses and amortization of acquired intangible assets, the transaction, including the French locations, is expected to be $0.32 to $0.36 accretive to earnings on a Non-GAAP basis in the first twelve months after full completion.