MIAMI--(BUSINESS WIRE)--World Fuel Services Corporation (NYSE: INT) today announced that it has signed a definitive agreement to sell its Multi Service payment solutions business to Corsair Capital, a New York based private equity firm specializing in business and financial services. Subject to certain closing adjustments, World Fuel Services will receive a total of approximately $350 million in cash consideration, consisting of approximately $275 million at closing and an additional deferred payment of $75 million, of which $50 million will be conditioned on Multi Service's achievement of certain financial targets through 2022.
The divestiture is part of World Fuel Services’ strategy to sharpen its portfolio of businesses and focus on activities that are core to its long-term growth. The sale represents an important step in advancing this strategy by monetizing the Multi Service payment solutions business at an attractive valuation. The closing of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the next ninety days.
“Exiting this line of business will provide us with additional capital to build greater momentum in our core business activities,” stated Michael J. Kasbar, chairman and chief executive officer. “We thank all of our Multi Service colleagues worldwide for their commitment and contribution to World Fuel Services over the years and we wish them continued success in the future.”
“In the short-term, the proceeds from this transaction will enable us to pay down debt, thereby further improving our liquidity profile and enhancing our ability to invest in our core businesses,” stated Ira M. Birns, executive vice president and chief financial officer.
The transaction will result in a one-time after-tax gain of approximately $65 million, or $1.02 per diluted share.
Credit Suisse acted as financial advisor to World Fuel Services in the transaction and Cravath, Swaine & Moore LLP acted as legal advisor. Keefe, Bruyette & Woods, Inc. acted as capital markets advisor to Corsair Capital in the transaction and Simpson Thacher & Bartlett LLP and Chapman & Cutler LLP acted as legal advisors.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global energy management company involved in providing energy procurement advisory services, supply fulfillment and transaction and payment management solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries. 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.
For more information, call 305-428-8000 or visit www.wfscorp.com.
