World Fuel Services Corporation To Acquire Watson Petroleum Limited

  World Fuel Services Corporation To Acquire Watson Petroleum Limited

         Will Significantly Expand Land Segment in the United Kingdom

Business Wire

MIAMI -- January 6, 2014

World Fuel Services Corporation (NYSE: INT), announced today that a
wholly-owned subsidiary of the company has signed a definitive agreement to
acquire Watson Petroleum Limited, a leading distributor of gasoline, diesel,
heating oil, lubricants and other products and related services across England
and Wales, for a purchase price of £117 million ($191 million). The purchase
price will be funded through cash-on-hand and the company’s existing credit
facilities.

Watson Petroleum is headquartered in Brinkworth, England and has 670
employees. With expected 2013 revenue of $2.2 billion, Watson Petroleum is one
of the largest fuel distributors in the United Kingdom.

“We look forward to welcoming the Watson Petroleum team to World Fuel
Services,” said Michael J. Kasbar, president and chief executive officer of
World Fuel Services Corporation. “Combined with our existing land business in
the United Kingdom, this transaction will further solidify Watson’s position
as one of the largest distributors of ground-based fuels in the United Kingdom
and will provide a platform for further growth in the ground fuels space in
the United Kingdom and elsewhere in Europe.”

“We are very excited to be joining a company with the capabilities and breadth
of products and services of World Fuel. Coupled with World Fuel’s solid
financial foundation, this transaction will allow us to expand our product and
service offerings and further grow our distribution network,” stated Tony
Watson, managing director of Watson Petroleum Limited.

The transaction is expected to be $0.18 to $0.22 accretive to earnings on a
GAAP basis in the first twelve months. Non-GAAP accretion, which excludes
amortization of acquired intangible assets of approximately $0.10 per share,
is expected to be $0.28 to $0.32 in the first twelve months.

The transaction is subject to customary regulatory consents and closing
conditions and is expected to be completed within the next ninety 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 Watson Petroleum’s 2013 revenue, the effect of the
transaction on its position as a distributor in the United Kingdom, its
opportunities for growth and expansion of offerings, as well as our
expectations about the timing of closing, the funding of the purchase price,
and 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 21, 2013. 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 acquired business, our ability to capitalize on new market
opportunities, unexpected delays in closing, potential liabilities and the
extent of any insurance coverage, the impact of quarterly fluctuations in
results, the creditworthiness of our customers and counterparties and our
ability to collect accounts receivable, 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, 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 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 products and related 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.

Contact:

World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive Vice President & Chief Financial Officer
 
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