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MIAMI — World Fuel Services Corp. closed on its acquisitions of PAPCO Inc. and Associated Petroleum Products Inc. (APP).
PAPCO is headquartered in Virginia Beach, Va., with 150 employees and 2015 revenue of $1 billion, and APP is headquartered in Tacoma, Wash., with 275 employees and 2015 revenue of $600 million. Both are distributors of gasoline, diesel, lubricants, propane and related services in their respective regions.
"We are pleased to welcome the PAPCO and APP teams to the World Fuel Services organization," said Michael J. Kasbar, chairman and CEO of World Fuel Services Corp. "These transactions, combined with our existing World Fuel land segment operations, will serve to further enhance our commercial and industrial platforms to deliver value-added solutions to customers across the United States."
Excluding the impact of one-time acquisition related expenses and amortization of acquired intangible assets of approximately $4 million and $9 million respectively, the transactions are expected to be $0.22 to $0.26 accretive to earnings on a Non-GAAP basis in the first 12 months.
In October, World Fuel Services purchased 100 percent of the equity securities of Pester Marketing Co. and its wholly owned subsidiaries, Alta Fuels LLC and Alta Transportation LLC. Denver-based Pester operated 57 convenience stores and two terminals, and was a distributor of biofuels and lubricants to wholesale, commercial and agricultural customers, as CSNews Online previously reported.
Pester also transported motor fuels to certain Pester retail stores and to the wholesale, commercial and agricultural customers it supplies. Its convenience stores were located in Colorado, Kansas, Nebraska and New Mexico, primarily under the Alta Convenience brand name.
Miami-based World Fuel Services is a global fuel logistics, transaction management and payment processing company, principally engaged in the distribution of fuel and related products and services in the aviation, marine and land transportation industries.