(By Balaseshan) World Fuel Services Corp. (NYSE:INT), a global fuel logistics company, said its subsidiary has agreed to buy certain assets of CarterEnergy Corp. for an undisclosed sum.
World Fuel Services Inc. has signed a definitive agreement to acquire select assets of CarterEnergy, including the assets comprising CarterEnergy's wholesale motor fuel distribution business.
The transaction is expected to be $0.04 to $0.07 per share accretive to earnings on a GAAP basis in the first twelve months. Non-GAAP accretion, which excludes amortization of acquired intangible assets of about $0.02 per share, is expected to be $0.06 to $0.09 in the first twelve months.
"CarterEnergy will further expand our presence in the branded wholesale market and increase our global land volume to more than 3.5 billion gallons," said Michael Kasbar, Chief Executive of World Fuel Services Corp.
CarterEnergy, based in Overland Park, Kansas with 2011 volume in excess of 500 million gallons, is a branded distributor for Philips 66, BP, Valero, Suncor, Shell, ExxonMobil, Cenex and Sinclair.
CarterEnergy distributes gasoline and diesel fuel under long-term contracts to more than 700 retail operators and is a supplier to industrial, commercial and government customers in Kansas, Missouri, Colorado, Texas, Oklahoma, Arkansas, Nebraska, Illinois, Iowa, Wyoming, Arizona, Tennessee, New Mexico and Alabama.
The transaction is subject to customary closing conditions and is expected to be completed within the next sixty days.
INT closed Friday's regular session at $34.58. The stock has been trading between $29.53 and $49.15 for the past 52 weeks.