U.S. markets close in 6 hours 15 minutes
  • S&P 500

    4,450.30
    -32.43 (-0.72%)
     
  • Dow 30

    34,614.04
    -101.35 (-0.29%)
     
  • Nasdaq

    14,002.82
    -151.20 (-1.07%)
     
  • Russell 2000

    2,006.79
    -17.25 (-0.85%)
     
  • Crude Oil

    84.71
    -0.84 (-0.98%)
     
  • Gold

    1,841.30
    -1.30 (-0.07%)
     
  • Silver

    24.57
    -0.15 (-0.59%)
     
  • EUR/USD

    1.1349
    +0.0032 (+0.28%)
     
  • 10-Yr Bond

    1.7530
    -0.0800 (-4.36%)
     
  • GBP/USD

    1.3559
    -0.0041 (-0.31%)
     
  • USD/JPY

    113.7060
    -0.3940 (-0.35%)
     
  • BTC-USD

    38,577.17
    -4,148.60 (-9.71%)
     
  • CMC Crypto 200

    907.25
    +664.57 (+273.85%)
     
  • FTSE 100

    7,479.81
    -105.20 (-1.39%)
     
  • Nikkei 225

    27,522.26
    -250.67 (-0.90%)
     

World Fuel Services (INT) to Acquire Flyers Energy for $775M

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • INT
  • PSX
  • CEQP

World Fuel Services Corporation INT, through a wholly-owned subsidiary, entered an agreement to acquire Flyers Energy Group for $775 million.

At closing, petroleum marketing company Flyers Energy will receive $675 million, consisting of cash payments and up to $50 million in stock. The remaining amount will be paid in equal installments over the two years after the deal closes. The transaction, subject to customary closing conditions, is expected to complete within 60 to 90 days.

World Fuel Services is acquiring all holdings and operations of Flyers Energy’s unattended cardlock fuel locations in the United States. The deal involves Flyers Energy’s lubricant and bulk fuel distribution warehouses along with wholesale fuel distribution contracts with independent fuel stations.

World Fuel Services engages in the distribution of fuel, and associated products and services in the aviation, marine and land transportation industries. The latest acquisition is expected to broaden the company’s scope of land business in North America, thereby, boosting its supply and distribution capabilities along with its fleet fueling platform.

The latest acquisition reflects World Fuel Services’ strategy to drive growth in its key business activities, increase efficiencies and create long-term shareholder value. The company’s strong cash flow generation contributed to a cash position of $796 million at the end of third-quarter 2021. Hence, the company is well-positioned to complete the acquisition, while maintaining a strong balance sheet to capitalize on additional investment opportunities.

The company’s peer Phillips 66 PSX recently entered an agreement to acquire its master limited partnership Phillips 66 Partners PSXP to simplify its governance and corporate structure. Moreover, pipeline firm Crestwood Equity Partners LP CEQP agreed to acquire Oasis Midstream to expand its position in the Williston Basin through asset connectivity, and subsequent integration and optimization of existing infrastructure.

By collaborating, the portfolio of new businesses can increase further and have access to a larger market share.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
World Fuel Services Corporation (INT) : Free Stock Analysis Report
 
Phillips 66 (PSX) : Free Stock Analysis Report
 
Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
 
Phillips 66 Partners LP (PSXP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research