Wright Express to Acquire Fleet One for $369 Million
Wright Express has entered into a definitive agreement to acquire Fleet One from private firms LLR Partners and FTV Capital for $369 million in cash.
According to Wright Express, the company expects this acquisition to generate approximately $100 million in present value tax benefits. Wright Express is financing this all-cash transaction through its existing credit facility. The company stated it expects the transaction to close during the fourth quarter of 2012.
Fleet One provides fuel cards and a fleet management information service for fuel supply chains, and does business in the over-the-road and local fleet markets.
“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,” said Michael Dubyak, chairman, CEO and president of Wright Express. “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.”
According to Wright Express, Fleet One’s businesses generated revenue in excess of $56 million for the last 12 months ending June 30. The company has 210,000 active fuel cards that are accepted at 60,000 locations, including 6,700 over-the-road locations, according to Wright Express.