--- Will Expand Global Presence in General Aviation Market ---
MIAMI--(BUSINESS WIRE)--Jul. 14, 2014--
World Fuel Services Corporation (NYSE: INT) announced today that it has
signed a definitive agreement to acquire Colt International, LLC
(“Colt”), a leading provider of contract fuel and international trip
planning services in the general aviation marketplace, for a purchase
price of approximately $63 million. The purchase price will be funded
through cash-on-hand and the company’s existing credit facilities.
Colt, headquartered in Houston, Texas, with 150 employees and 2013
revenue of approximately $400 million, is a leading provider of contract
fuel and trip planning services at more than 3,000 locations worldwide.
“We look forward to welcoming the Colt team to World Fuel Services,”
said Michael J. Kasbar, chairman, president and chief executive officer
of World Fuel Services Corporation. “Colt will further expand our global
presence in contract fuel and international trip planning services,
driving strategic synergies in our growing general aviation business.”
“This transaction will enable us to combine the strengths of the Colt
and World Fuel international trip planning service platforms, leading to
an even stronger value proposition for the general aviation market,”
said Joel Purdom, chief executive officer of Colt International, LLC.
“Joining a company with the capabilities and expertise of World Fuel
will allow us to further enhance the level of service offered to one of
the largest contract fueling networks in the general aviation market,”
said Malcolm Hawkins, president of Colt International, LLC.
The transaction is expected to be $0.06 to $0.09 accretive to earnings
on a GAAP basis in the first twelve months. Non-GAAP accretion, which
excludes amortization of acquired intangible assets of approximately
$0.02 per share, is expected to be $0.08 to $0.11 in the first twelve
months.
The transaction is subject to customary closing conditions and is
expected to be completed within the next 30 days.
Information Relating to Forward-Looking Statements
With the exception of historical information in this news release, this
document includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
regarding our expectations about expanding our global presence and
strategic synergies, the effect of the acquisition on our general
aviation business, the strength of the value proposition for the general
aviation market, as well as our expectation regarding the effect of the
transaction on our earnings. These forward-looking statements are
qualified in their entirety by cautionary statements and risk factor
disclosures contained in the company’s Securities and Exchange
Commission (“SEC”) filings, including the company’s Annual Report on
Form 10-K filed with the SEC on February 14, 2014. Actual results may
differ materially from any forward-looking statements due to risks and
uncertainties, including, but not limited to: our ability to effectively
integrate and derive benefits from the Colt business, our ability to
capitalize on new market opportunities, particularly in general aviation
market, potential liabilities and the extent of any insurance coverage,
the outcome of pending litigation and other proceedings, the impact of
quarterly fluctuations in results, the creditworthiness of our customers
and counterparties and our ability to collect accounts receivable,
environmental and other risks associated with the storage,
transportation and delivery of petroleum products, our failure to
effectively hedge certain financial risks associated with the use of
derivatives, non-performance by counterparties or customers on
derivatives contracts, loss of, or reduced sales, to a significant
government customer, uninsured losses, the failure of fuel and other
products we sell to meet specifications, fluctuations in world oil
prices or foreign currency, changes in political, economic, regulatory,
or environmental conditions, adverse conditions in the markets or
industries in which we or our customers and suppliers operate, the
impact of natural disasters, adverse results in legal disputes,
unanticipated tax liabilities, our ability to retain and attract senior
management and other key employees and other risks detailed from time to
time in the company’s SEC filings. New risks emerge from time to time
and it is not possible for management to predict all such risk factors
or to assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, changes in
expectations, future events, or otherwise.
Non-GAAP Financial Measures
This press release includes selected financial information that has not
been prepared in accordance with accounting principles generally
accepted in the United States (“GAAP”). Specifically, we have used
non-GAAP accretion to earnings per share, which excludes amortization of
acquired intangible assets, primarily because we do not believe it is
reflective of the company’s core operating results. We believe that this
non-GAAP financial measure, when considered in conjunction with our
financial information prepared in accordance with GAAP, is useful for
investors to evaluate our core operating results and trends.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. In addition, our presentation of non-GAAP accretion may not
be comparable to the presentation of such metric by other companies.
Investors are encouraged to review the reconciliation of this non-GAAP
measure to its most directly comparable GAAP financial measure contained
in this press release.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a leading global
fuel logistics company, principally engaged in the marketing, sale and
distribution of aviation, marine and land fuel and related products and
services on a worldwide basis. World Fuel Services sells fuel and
delivers services to its clients at more than 8,000 locations in more
than 200 countries and territories worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, and government accounts. The company also
offers transaction management services which consist of card payment
solutions and merchant processing services to customers in the aviation,
marine and land transportation industries. For more information, call
305-428-8000 or visit www.wfscorp.com.
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive
Vice President & Chief Financial Officer
