World Fuel Services Corporation Completes Watson Petroleum Acquisition
March 10 2014 - 08:00AM
Business Wire
World Fuel Services Corporation (NYSE:INT), announced today that
it has completed the previously announced acquisition of Watson
Petroleum Limited.
“The Watson acquisition will significantly expand our land
segment in the United Kingdom and serve as a platform for further
growth across Europe,” said Michael J. Kasbar, president and chief
executive officer of World Fuel Services Corporation. “We are
pleased to welcome the Watson team to the World Fuel
organization.”
Watson Petroleum, based in Brinkworth, England, generated
revenue of $2.2 billion in 2013 and is the second largest
distributor of ground-based fuels in the United Kingdom, providing
gasoline, diesel, heating oil, lubricants and other products and
related services. Watson delivers its product and service offerings
through its well established distribution network consisting of 47
locations throughout England and Wales.
The transaction is expected to be $0.18 to $0.22 accretive to
earnings on a GAAP basis in the first twelve months. Non-GAAP
accretion, which excludes amortization of acquired intangible
assets of approximately $0.10 per share, is expected to be $0.28 to
$0.32 in the first twelve months.
Information Relating to Forward-Looking
Statements
With the exception of historical information in this news
release, this document includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our expectations about the
effect of the acquisition on our land segment in the United Kingdom
and future growth across Europe, as well as our expectation
regarding the effect of the transaction on our earnings. These
forward-looking statements are qualified in their entirety by
cautionary statements and risk factor disclosures contained in the
company’s Securities and Exchange Commission (“SEC”) filings,
including the company’s Annual Report on Form 10-K filed with the
SEC on February 14, 2014. Actual results may differ materially from
any forward-looking statements due to risks and uncertainties,
including, but not limited to: our ability to effectively integrate
and derive benefits from the Watson Petroleum business, our ability
to capitalize on new market opportunities, particularly in Europe,
potential liabilities and the extent of any insurance coverage, the
outcome of pending litigation and other proceedings, the impact of
quarterly fluctuations in results, the creditworthiness of our
customers and counterparties and our ability to collect accounts
receivable, environmental and other risks associated with the
storage, transportation and delivery of petroleum products, our
failure to effectively hedge certain financial risks associated
with the use of derivatives, non-performance by counterparties or
customers on derivatives contracts, loss of, or reduced sales, to a
significant government customer, uninsured losses, the failure of
fuel and other products we sell to meet specifications,
fluctuations in world oil prices or foreign currency, changes in
political, economic, regulatory, or environmental conditions,
adverse conditions in the markets or industries in which we or our
customers and suppliers operate, the impact of natural disasters,
adverse results in legal disputes, unanticipated tax liabilities,
our ability to retain and attract senior management and other key
employees and other risks detailed from time to time in the
company’s SEC filings. New risks emerge from time to time and it is
not possible for management to predict all such risk factors or to
assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
changes in expectations, future events, or otherwise.
Non-GAAP Financial Measures
This press release includes selected financial information that
has not been prepared in accordance with accounting principles
generally accepted in the United States (“GAAP”). Specifically, we
have used non-GAAP accretion to earnings per share, which excludes
amortization of acquired intangible assets, primarily because we do
not believe it is reflective of the company’s core operating
results. We believe that this non-GAAP financial measure, when
considered in conjunction with our financial information prepared
in accordance with GAAP, is useful for investors to evaluate our
core operating results and trends.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. In addition, our presentation of
non-GAAP accretion may not be comparable to the presentation of
such metric by other companies. Investors are encouraged to review
the reconciliation of this non-GAAP measure to its most directly
comparable GAAP financial measure contained in this press
release.
About World Fuel Services
Corporation
Headquartered in Miami, Florida, World Fuel Services is a
leading global fuel logistics company, principally engaged in the
marketing, sale and distribution of aviation, marine and land fuel
and related products and services on a worldwide basis. World Fuel
Services sells fuel and delivers services to its clients at more
than 8,000 locations in more than 200 countries and territories
worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel
management. Aviation customers include commercial airlines, cargo
carriers, private aircraft and fixed base operators (FBOs), as well
as the United States and foreign governments. World Fuel Services'
marine customers include international container and tanker fleets,
cruise lines and time-charter operators, as well as the United
States and foreign governments. Land customers include petroleum
distributors, retail petroleum operators, and industrial,
commercial, and government accounts. The company also offers
transaction management services which consist of card payment
solutions and merchant processing services to customers in the
aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
World Fuel Services CorporationIra M. Birns,
305-428-8000Executive Vice President & Chief Financial
Officer
World Fuel Services (NYSE:INT)
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