MIAMI -- World Fuel Services Corp. announced that it has signed an agreement to acquire select assets of Multi Service Corp. for a purchase price of approximately $137 million. Multi Service is a global transaction management company specializing in fleet, government and commercial payment programs primarily through closed-loop networks.
The purchase price will be principally funded through the company's existing credit facilities.
Multi Service, based in Overland Park, Kansas, has more than eight million transactions annually. The Multi Service product offering includes the Multi Service Fuel Card, accepted at more than 3,500 truckstops in the United States and Canada, Multi Service Tolls, payment solutions for tolls, bridges and tunnels across Europe, government payment systems for global fuel procurement, and commercial payment programs in the transportation and retail industries.
"We look forward to welcoming the Multi Service team to World Fuel," said Michael J. Kasbar, president and CEO of World Fuel Services. "Multi Service will significantly expand our existing payment processing business and will further help us leverage technology across our global platform."
Mark O'Connell, president of Multi Service. Said, "We are excited to be joining a company with the reputation and financial strength of World Fuel. The ability to leverage World Fuel's global capabilities and presence should accelerate our growth opportunities throughout the world."
"Multi Service is expected to produce positive cash flow of $15 to $20 million in 2013," said Ira M. Birns, executive vice president and CFO of World Fuel Services. "The addition of the Multi Service platform, which will principally be reported as part of our land segment, will create expanded growth opportunities across all of our businesses."
The transaction is subject to customary closing conditions, and the companies said that they expect it to be completed within the next 30 days.
Based in Miami, Fla., World Fuel Services is a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services on a worldwide basis. World Fuel Services sells fuel and delivers services to its clients at 6,000 locations in more than 200 countries and territories worldwide.
The company's global team of market makers provides deep domain expertise in all aspects of aviation, marine and land fuel management. Aviation customers include commercial airlines, cargo carriers, private aircraft and fixed-base operators (FBO's), as well as the United States and foreign governments. World Fuel Services' marine customers include international container and tanker fleets, cruise lines and time-charter operators, as well as the United States and foreign governments. Land customers include petroleum distributors, retail petroleum operators and industrial, commercial and government accounts.
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