Agreement to Acquire Pacific Pride Will Expand Presence in
Distributor Channel
In Conjunction with Announcement of Fourth-Quarter Financial
Results, Wright Express to Discuss Transaction on Conference Call at
10:00 a.m. ET Today
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Feb. 6, 2008--Wright
Express Corporation (NYSE: WXS) today announced that it has entered
into a definitive asset purchase agreement to acquire certain assets
of privately held Pacific Pride Services, Inc. for approximately $32
million in cash, financed through the Company's existing credit
facility. The transaction is expected to close before the end of the
first quarter of 2008.
The U.S. fleet fuel distributor channel represents an important
strategic growth opportunity for Wright Express. As a result of the
acquisition, Wright Express expects to increase its penetration of the
distributor channel by leveraging Pacific Pride's local market
presence and brand recognition, as well as its platform and products
for commercial vehicle fleets.
Pacific Pride's franchise network encompasses over 330 independent
fuel franchisees. The company's network of independent commercial
cardlock fueling sites processes approximately 32 million fleet card
transactions annually. Pacific Pride was founded in 1984 and is
headquartered in Salem, Oregon.
Pacific Pride franchisees issue their own Pacific Pride commercial
fueling cards to fleet customers. These cards provide access to fuel
at more than 1,000 Pacific Pride and strategic partner locations in
the U.S. and Canada. Pacific Pride provides a variety of services to
franchisees including training, marketing, advertising, network
operations and financial settlement between franchisees.
Pacific Pride generates approximately 80% of its revenue from
transaction fees. Revenues for 2007 were approximately $7 million.
Wright Express expects the acquisition to be accretive to non-GAAP
earnings in the first 12 months of combined operations and to have no
impact on the Company's margins. The deal is expected to be accretive
on a non-GAAP basis in 2008.
Management Comments
"Over the past two years Wright Express has made a large
investment in developing a state-of-the-art distributor payment
processing and information platform for Pacific Pride, and we are
pleased to be taking this relationship to the next level," said
Michael Dubyak, president and chief executive officer of Wright
Express. "A pioneer in card lock fueling, Pacific Pride has built a
great reputation for service and a broad nationwide network of fueling
sites."
"Pacific Pride's distributor value proposition - strong industry
relationships, exceptional security and outstanding reporting
capabilities - is a great strategic fit for us," Dubyak said. "The
Pacific Pride platform and product set, which Wright Express has now
enhanced, will provide us with immediate access to a broader universe
of fuel marketers and enhanced pricing and settlement capabilities.
This should strengthen our relationships with distributors and the
small fleets they serve, accelerating our strategic initiatives in
these key markets."
"Additionally, the more than 330 independent distributors in
Pacific Pride's franchisee network represent an important
cross-selling opportunity for our new TelaPoint business," said
Dubyak. "Every one of these Pacific Pride franchisees manages fuel
storage tanks at their retail and bulk sites, and TelaPoint offers a
browser-based solution for fuel purchasing and inventory management.
The potential to provide fuel distributors with a comprehensive
product - from fuel inventory management on the wholesale end to fleet
payment processing and purchasing controls on the retail end - is an
exciting development for Wright Express."
David Harris, President of Pacific Pride said, "As part of the
Wright Express organization, Pacific Pride will benefit from increased
site coverage and better access to the technology, services and fleet
products offered by Wright Express, which in turn should enhance
franchisee network growth. Our existing agreements and relationships
with Pacific Pride franchisees will remain in effect. We expect to
remain based in Salem, Oregon and to continue offering and supporting
all of our current card products. We look forward with great
excitement to joining forces with Wright Express and creating added
value for the customers of both companies."
Conference Call Details
Wright Express will host a conference call today, February 6,
2008, at 10:00 a.m. (ET) to discuss the Company's fourth-quarter 2007
financial results and the Pacific Pride acquisition. A live webcast of
this conference call will be available at the "Investor Relations"
section of the Company's website (www.wrightexpress.com). The live
conference call also can be accessed by dialing (877) 440-5803 or
(719) 325-4884. A replay of the webcast will be available on the
Company's website for approximately three months.
About Wright Express
Wright Express is a leading provider of payment processing and
information management services to the U.S. commercial and government
vehicle fleet industry. Wright Express provides these services for
approximately 300,000 commercial and government fleets containing 4.5
million vehicles. The Company markets its payment processing services
directly and is an outsourcing provider for more than 125 strategic
relationships, and offers a MasterCard-branded corporate card. The
Company employs more than 675 people and maintains its headquarters in
South Portland, Maine. For more information about Wright Express,
please visit wrightexpress.com.
This press release contains forward-looking statements, including
statements regarding: our intention to complete the acquisition of
Pacific Pride Services, Inc. and timing related to the closing; the
importance of the distributor channel as a strategic growth
opportunity and expectation regarding the manner in which this
acquisition will allow access to distributors; expectations regarding
the accretive nature of the acquisition and its impact on our margins;
beliefs with respect to the strategic fit of Pacific Pride Services,
Inc.; and the benefits to Pacific Pride Services, Inc. from this
acquisition. These forward-looking statements include a number of
risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include: consummation of the
Pacific Pride Services, Inc. transaction; achievement of the expected
benefits of the acquisition of Pacific Pride Services, Inc.;
volatility in fuel prices; first-quarter and full-year 2008 fueling
patterns; the effect of the Company's fuel-price-related derivative
instruments; effects of competition; the potential loss of key
strategic relationships; decreased demand for fuel and other vehicle
products and services and the effects of general economic conditions
on the commercial activity of fleets; the Company's ability to rapidly
implement new technology and systems; potential corporate transactions
including alliances, mergers, acquisitions and divestitures; changes
in interest rates and the other risks and uncertainties included from
time to time in the Company's filings with the Securities and Exchange
Commission, including the annual report on Form 10-K filed on February
28, 2007, and the Company's other periodic and current reports. Wright
Express Corporation undertakes no obligation to update these
forward-looking statements at any future date or dates.
CONTACT: News media contact:
Wright Express
Jessica Roy, 207-523-6763
Jessica_Roy@wrightexpress.com
or
Investor contact:
Wright Express
Steve Elder, 207-523-7769
Steve_Elder@wrightexpress.com
SOURCE: Wright Express Corporation