FleetCor Acquires GE Capital’s Fuel Card Business in Australia
NORCROSS, Ga. -- March 26, 2013
FleetCor Technologies, Inc. (NYSE: FLT), a global provider of fuel cards and
workforce payment programs to businesses, today announced that it has acquired
certain fuel card assets from GE Capital Australia’s Custom Fleet leasing
GE Capital’s “Fleet Card” is a multi-branded fuel card product with acceptance
in over 6,000 fuel outlets and over 7,000 automotive service and repair
centres across Australia. Through this transaction, FleetCor will acquire the
Fleet Card product, brand, acceptance network contracts, supplier contracts,
and approximately one-third of the customer relationships with regards to fuel
cards. The remaining customer relationships will be retained by Custom Fleet,
and are comprised of companies which have commercial relationships with Custom
Fleet beyond fueling, such as fleet management and leasing.
Ron Clarke, FleetCor’s Chairman and Chief Executive Officer commented, “We are
delighted to announce this deal with GE Capital, and continue our global
expansion by entering the Australian market. Fleet Card is a terrific product
with near universal acceptance, and we look forward to marketing it more
broadly to a wider audience.”
In conjunction with the transaction, FleetCor and GE Capital will enter into a
long term agreement under which FleetCor will provide fuel card processing and
network services to support Custom Fleet’s retained Fleet Card customer
portfolio. Custom Fleet will continue to market FleetCor’s co-branded Fleet
Cards as part of Custom Fleet’s bundled fleet management and leasing product
Andrew Egan, General Manager for Custom Fleet Australia said, "We are excited
to be working with FleetCor, as this long term arrangement will leverage the
strengths of both organisations."
“We expect this transaction to be accretive by approximately $.03 in adjusted
net income per diluted share for the period of time that we will own the
business in 2013. The 2013 cash EPS impact is also net of about $1 million in
deal related expenses,” said Eric Dey, FleetCor’s Chief Financial Officer.
Terms of the transaction and processing agreement were not disclosed.
This press release contains forward-looking statements within the meaning of
the federal securities laws. Statements that are not historical facts,
including statements about FleetCor's beliefs, expectations and future
performance, are forward-looking statements. Forward-looking statements can be
identified by the use of words such as "anticipate," "intend," "believe,"
"estimate," "plan," "seek," "project" or "expect," "may," "will," "would,"
"could" or "should," the negative of these terms or other comparable
terminology. Examples of forward-looking statements in this press release
include statements relating to FleetCor’s expansion, leverage of the
processing arrangement, and accretiveness to earnings. These forward-looking
statements are subject to a number of risks and uncertainties that could cause
actual results to differ materially from those contained in any
forward-looking statement, such as delays or failures associated with
acquisitions and the failure to successfully integrate or otherwise achieve
anticipated benefits from such acquired businesses; failure to successfully
expand business internationally; the impact of foreign exchange rates on
operations, revenue and income; the effects of general economic conditions on
commercial activity, as well as the other risks and uncertainties identified
under the caption "Risk Factors" in FleetCor's Annual Report on Form 10-K for
the year ended December 31, 2011, filed with the Securities and Exchange
Commission on February 29, 2012. FleetCor believes these forward-looking
statements are reasonable; however, forward-looking statements are not a
guarantee of performance, and undue reliance should not be placed on such
statements. The forward-looking statements included in this press release are
made only as of the date hereof, and FleetCor does not undertake, and
specifically disclaims, any obligation to update any such statements or to
publicly announce the results of any revisions to any of such statements to
reflect future events or developments.
FleetCor is a leading global provider of fuel cards and workforce payment
products to businesses. FleetCor’s payment programs enable businesses to
better control employee spending and provide card-accepting merchants with a
high volume customer base that can increase their sales and customer loyalty.
FleetCor serves commercial accounts in North America, Latin America, Europe,
and Australia. For more information, visit www.fleetcor.com.
About GE Capital
GE Capital Australia and New Zealand is a specialist financial services
provider and part of the global GE Capital business, which operates in 55
countries around the world. With 4,600 employees and $16 billion in assets
locally, GE Capital offers unique financial solutions such as fleet and
equipment finance, personal loans, retailer solutions and credit cards,
corporate finance, inventory finance and insurance services. For more
information, visit www.gecapital.com.au. Twitter @GECapitalAus.
About Custom Fleet
Custom Fleet is part of GE Capital, one of the world’s leading automotive
financial services and fleet management companies. Globally GE Capital
supports a fleet in excess of 1.5 million vehicles, in 22 countries. In
Australia and New Zealand, Custom Fleet offers expertise in fleet management
and leasing across both passenger and commercial vehicles for large and small
fleets. Custom Fleet is a significant distributor of the Fleet Card product.
For more information, visit www.customfleet.com.au.
FleetCor Technologies, Inc.
+1 770 729 2017
GE Capital Australia and New Zealand
+61 (0) 3 9921 6725
+61 (0) 404 099 246
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