World Fuel Services Corporation to Acquire Assets of Multi Service Corporation
/Multi Service is headquartered in Overland Park, Kansas and has 360 employees. Multi Service, which processes more than eight million transactions annually, also maintains offices in the Netherlands and Australia. The Multi Service product offering includes the Multi Service Fuel Card, accepted at more than 3,500 truck stops 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,” stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “Multi Service will significantly expand our existing payment processing business and will further help us leverage technology across our global platform.”
“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,” stated Mark O’Connell, president of Multi Service.
The transaction is expected to be $0.12 to $0.16 accretive to earnings on a GAAP basis in the first twelve months. Non-GAAP accretion, which excludes amortization of acquired intangible assets of approximately $0.04 per share, is expected to be $0.16 to $0.20 in the first twelve months. In conjunction with this acquisition, the company will record one-time transaction-related expenses of approximately $2.8 million in the fourth quarter of 2012.
“Multi Service is expected to produce positive cash flow of $15 to $20 million in 2013,” said Ira M. Birns, executive vice president and chief financial officer of World Fuel Services Corporation. “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 is expected to be completed within the next thirty days.