SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Nov. 8, 2013--
WEX
Inc. (NYSE: WEX), a leading provider of corporate payment solutions,
today announced that it plans to acquire the assets of ExxonMobil’s
European commercial fuel card (“Esso Card”) program through a majority
owned joint venture, WEX Europe Services Limited. The anticipated
transaction is subject to completion of the employee information and
consultation processes, and obtaining of competition authority
approvals, as appropriate. Upon completion of the employee information
and consultation process, WEX expects to enter into a definitive
purchase and sale agreement related to the proposed acquisition with
ExxonMobil. In addition, both parties plan to enter into a long term
supply agreement to serve the current and future Esso Card customers and
to grow the business.
“Today’s announcement represents a significant milestone for WEX, as
building our on-the-ground presence in the European market has been a
key element to our international expansion strategy. The addition of the
Esso Card program to our offering will establish our presence in the
European fuel card market. Once completed, we expect that it will allow
WEX to leverage an existing infrastructure, creating a substantial and
profitable European footprint to develop and grow our European fleet
card business,” said Michael E. Dubyak, WEX chairman and chief executive
officer.
Under the terms of the proposed transaction, WEX will purchase
ExxonMobil’s commercial fleet fuel card program which includes
operations, funding, pricing, and sales and marketing in nine countries
in Europe.
In anticipation of an expected closing in late fourth quarter 2014 or
first quarter 2015, WEX will make investments relating to the
integration of operations and systems. It is anticipated that these
investments will occur over a two year period, and are expected to
impact 2014 earnings by ten to thirteen million dollars after taxes.
Upon completion of the deal, WEX estimates this portfolio will
contribute approximately $35 million in annual revenue.
Forward-Looking Statements
This news release contains
forward-looking statements, including statements regarding: the
anticipated acquisition of the ExxonMobil European commercial fuel card
(“Esso Card”) program assets; the anticipated revenue and expense
associated with the Esso Card program; the expected operational benefits
of any such acquisition; and, the timing related to the closing of such
acquisition. Any statements that are not statements of historical facts
may be deemed to be forward-looking statements. When used in this news
release, the words "may," "could," "anticipate," "plan," "continue,"
"project," "intend," "estimate," "believe," "expect" and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such words. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially,
including: the effects of general economic conditions on fueling
patterns and the commercial activity of fleets; the effects of the
Company’s business expansion and acquisition efforts; the Company’s
failure to successfully integrate the businesses it has acquired; the
failure of corporate investments to result in anticipated strategic
value; the impact and range of credit losses; breaches of the Company’s
technology systems and any resulting negative impact on our reputation,
liability, or loss of relationships with customers or merchants; fuel
price volatility; the Company’s failure to maintain or renew key
agreements; failure to expand the Company’s technological capabilities
and service offerings as rapidly as the Company’s competitors; the
actions of regulatory bodies, including banking and securities
regulators, or possible changes in banking regulations impacting the
Company’s industrial bank and the Company as the corporate parent; the
impact of foreign currency exchange rates on the Company’s operations,
revenue and income; changes in interest rates; the impact of the
Company’s outstanding bonds on its operations; financial loss if the
Company determines it necessary to unwind its derivative instrument
position prior to the expiration of a contract; the incurrence of
impairment charges if our assessment of the fair value of certain of our
reporting units changes; the uncertainties of litigation; as well as
other risks and uncertainties identified in Item 1A. of the Company's
annual report on Form 10-K filed with the Securities and Exchange
Commission on March 1, 2013 and the Company's subsequent periodic and
current reports. The Company's forward-looking statements and these
factors do not reflect the potential future impact of any alliance,
merger, acquisition, disposition or stock repurchases. The
forward-looking statements speak only as of the date of this news
release and undue reliance should not be placed on these statements. The
Company disclaims any obligation to update any forward-looking
statements as a result of new information, future events or otherwise.
Conference Call Details
In conjunction with this
announcement, WEX will host a conference call today, November 8, at 9
a.m. (ET). The conference call will be webcast live on the Internet, and
can be accessed at the Investor Relations section of the WEX website, http://www.wexinc.com.
The live conference call also can be accessed by dialing (866) 334-7066
or (973) 935-8463. A replay of the webcast will be available on the
Company's website.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of
corporate payment solutions. From its roots in fleet card payments
beginning in 1983, WEX has expanded the scope of its business into a
multi-channel provider of corporate payment solutions representing more
than 7.6 million cardholders and offering exceptional payment security
and control across a wide spectrum of business sectors. The Company’s
operations include WEX Bank, Fleet One, Pacific Pride, rapid! PayCard,
Wright Express Australia, Wright Express New Zealand and CorporatePay
Limited, England, as well as a majority equity position in UNIK S.A.,
Brazil. WEX and its subsidiaries employ more than 1,400 associates. For
more information about WEX, please visit www.wexinc.com.
Source: WEX Inc.
WEX Inc.
News media contact:
Jessica Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor
Relations contact:
Michael E. Thomas, 207-523-6743
Michael.Thomas@wexinc.com