Wright Express Corporation recently announced that it has entered into a definitive asset purchase agreement to acquire certain assets of privately held Pacific Pride Services, Inc. for approximately $32 million in cash, financed through the company's existing credit facility. The transaction is expected to close before the end of the first quarter of 2008.
The U.S. fleet fuel distributor channel represents an important strategic growth opportunity for Wright Express. As a result of the acquisition, Wright Express expects to increase its penetration of the distributor channel by leveraging Pacific Pride's local market presence and brand recognition, as well as its platform and products for commercial vehicle fleets.
Pacific Pride's franchise network encompasses over 330 independent fuel franchisees. The company's network of independent commercial card-lock fueling sites processes approximately 32 million fleet card transactions annually.
Pacific Pride generates approximately 80 percent of its revenue from transaction fees. Revenues for 2007 were approximately $7 million. Wright Express expects the acquisition to be accretive to non-GAAP earnings in the first 12 months of combined operations and to have no impact on the Company's margins.