Milwaukee fuel distributor sells assets to Miami firm; Regal Beloit acquires Australian company; Madison utility acquires Wisconsin Electric’s share of Sheboygan plant
Milwaukee fuel distributor sells assets to Miami firm
World Fuel Services Corp. announced that its wholly-owned subsidiary, World Fuel Services Inc., has signed a definitive agreement to acquire select assets of Milwaukee-based Lakeside Oil Company Inc.
The acquisition will include the assets comprising Lakeside’s wholesale motor fuel distribution business. The purchase will be funded from the company’s cash on hand.
Lakeside, with 2009 volume of approximately 350 million gallons, is a branded distributor for BP Products North America Inc., ExxonMobil Corp., Citgo Petroleum Corp. and a licensee for Clark Brands LLC. Lakeside distributes gasoline and diesel fuel under long-term contracts to more than 250 retail operators in Wisconsin and Minnesota and is also a supplier to industrial, commercial and government customers.
"We look forward to welcoming the Lakeside team to World Fuel," said Michael Kasbar, president and chief operating officer of Miami-based World Fuel Services Corp. "Lakeside will further expand our presence in the branded wholesale market and increase our global land volume to approximately 1 billion gallons."
"We are extremely pleased to be joining a company with the reputation and capabilities of World Fuel. This transaction will allow us to utilize our market knowledge and further grow the business," said Bill Elliott, president of Lakeside.
Regal Beloit acquires Australian company
Regal Beloit Corp. has acquired CMG Engineering Group Pty. Ltd. of Melbourne, Australia.
CMG manufactures and distributes fractional horse power industrial motors, blower systems, and industrial metal products with operations in Australia, New Zealand, South Africa, Malaysia, Singapore, the United Kingdom and the Middle East.
The purchase price was approximately $75 million in cash, the assumption of approximately $5.5 million in net liabilities and 100,000 shares of Regal Beloit common stock.
CMG is expected to add approximately $92 million to Regal Beloit’s annual sales and add 4 cents to its earnings per share in 2010.
Henry Knueppel, chairman and chief executive officer of Regal Beloit, said, "We are very excited to announce the acquisition of CMG. The CMG business is a strong and growing business across the Asia-Pacific Region, South Africa, and the Middle East. This acquisition further expands the infrastructure necessary to significantly expand our commercial efforts in these critical regions. The company has an outstanding management team that has continuously grown the business at a multiple of market growth rates. Given this track record and the opportunities that RBC can bring to CMG, we are very confident that we will see accelerated growth. We have for some time searched for a commercial infrastructure in these important geographical regions that would allow us to leverage our global manufacturing platform. The combination of CMG and Regal Beloit’s Asia Pacific operations creates both a leading commercial and manufacturing footprint and an opportunity to take advantage of significant synergies between the organizations. CMG is a perfect fit to further complete this portion of our globalization strategy."
Jack Gringlas, group managing director and owner of CMG Engineering Group, said, "I am confident that we have found the ideal acquirer for our business. RBC will provide the best platform to secure the future of the CMG business and its team of experienced and dedicated staff. I will be continuing with CMG in the role of group managing director. I am extremely excited about the future of CMG as a result of this sale."
Madison utility acquires Wisconsin Electric’s share of Sheboygan plant
Wisconsin Power and Light Company (WPL), a subsidiary of Madison-based Alliant Energy Corp., plans to move forward with an asset sale agreement to acquire Wisconsin Electric Power Company’s 25 percent ownership interest in the Edgewater Generating Station Unit 5 power plant in Sheboygan.
The purchase price was not disclosed. The transaction is subject to customary closing conditions, including approval from the Public Service Commission of Wisconsin and the Federal Energy Regulatory Commission.
The Edgewater Generating Station includes three generating units with a total nameplate capacity of 770 megawatts.
WPL’s full ownership interest in Edgewater Generating Station Unit 5 will add about 95 megawatts of nameplate capacity to its generating portfolio.