USA: Wright Express Announces Fleet One Purchase
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Friday, 21 September 2012 |
Information management solutions firm Wright Express has announced that it has agreed terms to acquire over-the-road fuelling business Fleet One for $369m. The deal, an all cash transaction, will close in the fourth quarter of this year, said Wright Express, and will be financed through a credit facility already open to the company.
The deal will bring about $100m worth of tax benefits for the company, said Wright Express, adding that Bank of America Meryl Lynch acted as underwriters for the deal. The deal is still subject to regulatory approval, while some other routine business must be completed before the deal can be finalised.
“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 products set to service the full spectrum of fleets,” said Michael Dubyak, head of Wright Express. “Fleet one’s over-the-road business will give us an immediate presence in the heavy truck market in the US and Canada, while the blending of Fleet One and Wright Express’ small fleet and private label businesses should provide a greater scale.”
Dubyak also said that Fleet One’s private label business should allow it to do more business among mixed-type fleets.
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