FleetCor Raises $235 Million in Growth Capital

Fleet card provider gets boost from Bain, Summit

ATLANTA -- FleetCor, a provider of fleet card and related information services for business fleets and petroleum retailers, said it has received a $75 million equity investment from Bain Capital, a global private investment firm.

Also, FleetCor completed a recapitalization through which it replaced its existing senior credit facility with a $130 million term loan and a $30 million revolving facility raised by JP Morgan Chase Bank NA and PNC Bank NA. As part of the transaction, FleetCor's largest shareholder, Summit Partners, together with Bain Capital, [image-nocss] have acquired a majority interest in the company.

The company intends to use the proceeds from the recapitalization to replace its existing indebtedness, launch a new private-label fleet card program with BP, finance a partial redemption of shares from existing shareholders and to pursue additional acquisitions of related businesses.

Atlanta-based FleetCor's fleet cards use technology that provide corporate and government fleet managers with controls that prevent unauthorized purchases, and they have specialized reporting features that reduce overall fueling costs. FleetCor also provides turnkey, private-label card processing services to petroleum retailers and major oil companies looking to offer their commercial customers fleet card programs.

"FleetCor is an attractive investment with a strong position in a niche market with substantial barriers to entry, a unique business model and outstanding growth prospects," said Andrew Balson, a managing director at Bain Capital.

FleetCor and its subsidiaries currently processes 145 million transactions for more than 350,000 fleet clients, it said.

Boston-based Summit Partners is a global private equity and venture capital firm that has raised nearly $9 billion in private equity, venture capital and subordinated funds. It has provided growth equity capital to 270 companies, which have completed more than 100 public offerings and in excess of 100 strategic mergers or sales.

Bain Capital, also based in Boston, is a global private investment firm that manages several pools of capital including private equity, high-yield assets, mezzanine capital, venture capital and public equity with more than $26 billion in assets under management. It has made private-equity investments and add-on acquisitions in more than 230 companies in a variety of industries including such technology companies as UGS PLM, TeamSystem, DoubleClick and Ameritrade.