World Fuel Services Corp.’s subsidiary company signed an agreement to acquire two U.S. land fuel distributors for about $230 million: PAPCO Inc. and Associated Petroleum Products Inc. (APP), both of which feature propane businesses.
PAPCO is headquartered in Virginia Beach, Va., serving retail, commercial and industrial customers with fuel, price-risk management products and fleet card solutions throughout the mid-Atlantic region of the United States. PAPCO has about 150 employees and earned $1 billion in revenue in 2015.
APP, based in Tacoma, Wash., provides fuel and related services to agricultural, automotive, construction and commercial and industrial customers in the Pacific Northwest. The company employs 275 people and earned $600 million in revenue in 2015. APP’s propane business is also included on LP Gas’ Top 50 propane retailers list.
“The acquisitions of PAPCO and APP significantly expand our geographic reach and supply and distribution capabilities, while further strengthening our commercial and industrial distribution platform in the United States,” says Michael J. Kasbar, chairman and CEO of World Fuel Services, in a company statement.
Additionally, World Fuel Services says the two transactions are subject to customary closing conditions and are expected to be complete within the next 45 days.
World Fuel Services, headquartered in Miami, is a global fuel logistics, transaction management and payment processing company engaged in the distribution of fuel and related products and services in the aviation, marine and land transportation industries. It sells fuel and delivers services to clients at more than 8,000 locations across 200 countries and territories worldwide.