World Fuel Picks Up ExxonMobil's Aircraft Business, as Air Travel Soars
The deal includes airports in in Canada, the United Kingdom, France Germany, Italy, Australia and New Zealand
Miami, Florida-based World Fuel Services Corporation (NYSE: INT) is acquiring aviation fueling operations from affiliates of ExxonMobil (NYSE: XOM). The deal is valued at $260 million and will be fully funded with cash.
The agreement includes World Fuel acquiring the Exxon affiliate’s services at 83 airports with locations in Canada, the United Kingdom, Germany, Italy, Australia and New Zealand. Three additional locations in France are also expected to be added to the deal.
World Fuel's business includes fuel logistics, transaction management, and payment processing. It sells and distributes fuel in the aviation, marine, and land transportation industries. Earlier acquisitions for World Fuel includes its July 2014 deal to acquire Houston company contract fuel and trip planning services provider Colt International for $63 million and its September 2012 purchase of assets from Overland Park, Kansas-based CarterEnergy Corp.
Acquisitions in the aviation space are expected to take flight this year. Fueled by an increase in global air travel, companies active in the space have been upgrading their fleets and also picking up aerocraft parts makers, as seen with Warren Buffett’s Berkshire Hathaway Inc.’s (NYSE: BRK.A) $37.2 billion purchase of equipment maker Precision Castparts Corp.
This month, private equity firm Liberty Hall Capital Partners also made an acquisition in the sector with its $220 million purchase of aircraft parts maker AIM Aerospace.
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