World Fuel Services Acquires Hiller

World Fuel Services Inc., a fuel logistics company, announced that it completed the acquisition of a privately held aviation fuel distribution firm, The Hiller Group, along with its certain affiliates. The former is a wholly owned subsidiary of World Fuel Services Corporation (INT - Snapshot Report). The deal was announced in mid-December 2010.

Although the financial terms of the deal were not disclosed, World Fuel Services expects the acquisition to add five to seven cents per share to earnings in the first twelve months.

Tampa, Florida-based Hiller Group produces more than 120 million gallons of fuel every year. Apart from supplying aviation fuel to more than 600 fixed base operators and corporate flight departments, the company also engages in offering support services such as marketing, tailored business solutions, freight expertise and credit card processing.

In an attempt to expand the aviation fuels distribution business, World Fuel Services is quickly taking over other companies across the globe. In late December, World Fuel Services announced that its European unit has inked an agreement to acquire a Danish fuel supplier company Nordic Camp Supply ApS. The purchase price of the deal was estimated at $68.5 million.

World Fuel Services’ management regards these acquisitions to be highly accretive to the company’s portfolio in solidifying its foothold in the fuel logistics market. The company expects to explore more investment opportunities in the coming months.

Headquartered in Miami, World Fuel Services is a global leader in the fuel logistics industry. The company provides marketing and financing of aviation, marine and ground transportation fuel products and related services to its clients at more than 6,000 locations in 200 countries. The company faces competition from peers such as CVR Energy Inc. (CVI - Snapshot Report) and Delek US Holdings Inc. (DK - Snapshot Report).

World Fuel Services currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.

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