World Fuel Services to acquire assets of distributor Lakeside Oil
MIAMI -- World Fuel Services Corp. said that its wholly owned subsidiary, World Fuel Services Inc., has signed a definitive agreement to acquire select assets of Lakeside Oil Co. Inc., including the assets comprising Lakeside's wholesale motor fuel distribution business. The purchase will be funded from the company's cash on hand.
Lakeside Oil, based in Milwaukee, with 2009 volume of approximately 350 million gallons, is a branded distributor for BP Products North America Inc., ExxonMobil Corp., CITGO Petroleum Corp. and a licensee for Clark Brands LLC. Lakeside Oil distributes [image-nocss] gasoline and diesel fuel under long-term contracts to more than 250 retail operators in Wisconsin and Minnesota and is also a supplier to industrial, commercial and government customers.
"We look forward to welcoming the Lakeside team to World Fuel. Lakeside will further expand our presence in the branded wholesale market and increase our global land volume to approximately 1 billion gallons," said Michael J. Kasbar, president and COO of World Fuel Services.
"We are extremely pleased to be joining a company with the reputation and capabilities of World Fuel. This transaction will allow us to utilize our market knowledge and further grow the business," said Bill Elliott, president of Lakeside Oil.
The transaction, which is expected to be 6 to 8 cents accretive to earnings in the first 12 months, is subject to customary closing conditions and is expected to be completed within the next 90 days.
Headquartered in Miami, World Fuel Services is a global leader in the marketing and sale of marine, aviation and land fuel products, as well as related services. World Fuel Services sells fuel and delivers services to its clients at more than 6,000 locations in 200 countries, including airports, seaports, tanker truck loading terminals and other customer storage locations. With 44 strategically located global offices, World Fuel Services offers its clients a value-added outsource service for the supply, quality control, logistical support and price risk management of marine, aviation and land fuel.
Land customers include petroleum distributors, retail petroleum operators and industrial, commercial and government accounts. Aviation customers include commercial airlines, cargo carriers and corporate clientele, as well as the United States and foreign governments.