World Fuel Services Corp. (NYSE: INT) a wholly-owned subsidiary of the company has signed a definitive agreement to acquire Flyers Energy Group from the Dwelle family. The total purchase price for the acquisition will be approximately $775 million, of which $675 million will be paid at closing, consisting of cash and at the company’s option, up to $50 million of World Fuel Services common stock. The remaining $100 million will be paid in equal installments over the two years following completion of the transaction. The transaction will be principally funded with cash-on-hand with the balance drawn from the company’s revolving credit facility.
Flyers provides fleet fueling, fuel supply and lubricants distribution.
“The acquisition of Flyers will significantly expand the breadth of our land business in North America, further enhancing our supply and distribution capabilities as well as our fleet fueling platform,” stated Michael Kasbar, chairman and chief executive officer of World Fuel Services Corporation.
“The Flyers business is a perfect business and cultural fit for World Fuel given the relative markets in which we operate, and we are comfortable that our phenomenal Flyers team members will be at home with World Fuel,” said Walt Dwelle, managing partner, Flyers Energy Group.
“Our continued strong cash flow generation contributed to a $796 million cash position at the end of the third quarter,” said Ira Birns, executive vice president and chief financial officer. This positions us well to complete this strategic acquisition while continuing to maintain a strong and liquid balance sheet to further grow our core businesses and capitalize on additional strategic investment opportunities.”
BofA Securities Inc. acted as exclusive financial advisor to World Fuel Services in the transaction, and Norton Rose Fulbright and Kirkland & Ellis acted as legal advisors. DCA Partners acted as financial advisor to Flyers Energy Group, and Weintraub Tobin acted as legal advisor.