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World Fuel Services Corporation (WFS) announced today that a wholly owned subsidiary of the company has signed a definitive agreement to acquire Watson Petroleum Ltd., a leading distributor of gasoline, diesel, heating oil, lubricants and other products and related services across England and Wales, for a purchase price of GBP 117 million (US$191 million). The purchase price will be funded through cash-on-hand and the company’s existing credit facilities, WFS said.

Watson Petroleum is headquartered in Brinkworth, England and has 670 employees. With expected 2013 revenue of $2.2 billion, Watson Petroleum is one of the largest fuel distributors in the United Kingdom.

"We look forward to welcoming the Watson Petroleum team to World Fuel Services,” said Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. "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."

"We are very excited to be joining a company with the capabilities and breadth of products and services of World Fuel. Coupled with World Fuel’s solid financial foundation, this transaction will allow us to expand our product and service offerings and further grow our distribution network," stated Tony Watson, managing director of Watson Petroleum Limited.

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.

The transaction is subject to customary regulatory consents and closing conditions and is expected to be completed within the next ninety days.