Fri 27 Feb 2009, 10:35 GMT

World Fuel Services expands land fuel business


Acquisition of Illinois-based firm enhances its position in the ground-based fuel market.



Marine, aviation and land fuel products specialist World Fuel Services Corporation has announced that its wholly-owned subsidiary, World Fuel Services, Inc., has signed a definitive agreement to acquire select assets of TGS Petroleum, Inc., including the assets comprising TGS’ wholesale motor fuel distribution business.

TGS, based in Chicago, Illinois, with 2008 volume of over 100 million gallons, is an authorized branded distributor for CITGO Petroleum Corporation and Marathon Petroleum Company, LLC and a licensee for Clark Brands, LLC. TGS distributes gasoline and diesel fuel under long-term contracts to over 160 retail petroleum operators.

Commenting on the acquisition, Michael J. Kasbar, president and chief operating officer of World Fuel Services Corporation. said “This acquisition further expands the branded wholesale platform in our land segment. By combining TGS with our existing Texor business, we will expand our presence as the largest independent wholesale motor fuel distributor in the state of Illinois.”

The transaction, which is expected to be $0.03 to $0.05 accretive to earnings in the first twelve months, is subject to customary closing conditions and is expected to be completed within the next sixty days.

Last year, World Fuel Services, Inc. enhanced its position in the 180 billion gallon ground-based fuel market when it acquired assets of Texor Petroleum Company for a purchase price of approximately $104 million.

Texor is the largest independent motor fuel marketer in Illinois. It distributes gasoline and diesel fuel under long-term contracts to over 250 retail petroleum operators in northern Illinois and northwest Indiana and is also a significant supplier to industrial, commercial and government accounts.


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