Thu 2 Apr 2009 14:48

World Fuel Services completes TGS acquisition


TGS Petroleum acquisition is part of WFS strategy to expand its wholesale distribution business, says COO.



World Fuel Services Corporation has announced today that it has completed the previously announced acquisition of select assets of TGS Petroleum, Inc.

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 news, Michael J. Kasbar, president and chief operating officer of World Fuel Services said “The TGS acquisition is another step in our strategy to expand our presence in the branded wholesale distribution business. The integration of TGS into our land segment will create immediate synergies and expands upon our presence as the largest independent wholesale motor fuel distributor in the state of Illinois.”

This transaction is expected to be $0.03 to $0.05 accretive to earnings in the first full year.

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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