SOUTH PORTLAND, Maine -- Wright Express Corp., a leading provider of value-based business payment processing and information management solutions, and Fleet One, an over-the-road and local retail fueling business, recently announced that they have entered into a definitive agreement whereby Wright Express will acquire Fleet One from private-equity firms LLR Partners and FTV Capital for $369 million in cash.
The deal is anticipated to close in the fourth quarter of 2012, subject to regulatory approval and other customary closing conditions.
This transaction is expected to generate approximately $100 million in present value of tax benefits for Wright Express. The all cash transaction will be financed through the company's existing credit facility, and it anticipates that it will be immediately accretive to the company's adjusted net income, excluding one-time charges related to the transaction.
Antioch, Tenn.-based Fleet One provides fuel cards and fleet management information services that address the entire fuel card supply chain and has a meaningful presence in both the over-the-road and local fleet markets. For the last 12 months ending June 30, 2012, Fleet One's businesses generated revenue in excess of $56 million. It has 210,000 active cards, which are accepted at 60,000 locations, including 6,700 over-the-road locations.
Michael Dubyak"This is a unique opportunity to combine Fleet One's strong brand and presence in the over-the-road market with Wright Express' best-in-class product set to service the full spectrum of fleets," said Michael Dubyak, chairman, CEO and president of Wright Express. "Fleet One's over-the-road business will give us an immediate presence in the heavy truck market in the U.S. and Canada, while the blending of Fleet One and Wright Express' small fleet and private label businesses should provide greater scale. Additionally, their enhanced portfolio of services will strengthen our position to support mixed fleets. We expect this acquisition to provide us with significant opportunities for growth and it further demonstrates our commitment to expanding our Americas fleet business."
In other company news, the Maine Development Foundation has selected Dubyak as itshe 2012 Champion of Education, Training & Leadership Development. The award honors an individual or organization that has gone above and beyond to spark Maine's economy and help all Maine citizens reach their highest personal potential.
"I am humbled by this award and recognition," said Dubyak. "I am passionate about trying to align higher education--and now K-16--with Maine businesses and the growing need for STEM (science, technology, engineering and math) graduates. Maine businesses and the state educational systems must work in partnership if we are to properly train and retain our high school students that come through our college and university systems."
Ed Cervone, Maine Development Foundation interim executive director, said, "We greatly appreciate all that Mike does for Maine," said Ed Cervone, Maine Development Foundation interim executive director. "He has demonstrated the ability to collaborate and create successful partnerships across business and academic sectors. His ideas and leadership are truly making a difference in Maine."
South Portland, Maine-based Wright Express' operations include Wright Express Financial Services, Pacific Pride rapid! PayCard, Wright Express Prepaid Cards Australia, Wright Express Fuel Cards Australia and CorporatePay Ltd., England, as well as a majority equity position in UNIK S.A, a Brazilian company. Wright Express and its subsidiaries employ more than 900 associates in six countries.