Mon 17 Dec 2012, 15:33 GMT

WFS to acquire Multi Service Corp. assets


World Fuel Services in agreement to buy assets for around $137 million.



World Fuel Services Corporation announced today that it has signed a definitive agreement to acquire select assets of Multi Service Corporation for a purchase price of approximately $137 million.

Multi Service is a global transaction management company specializing in fleet, government and commercial payment programmes primarily through closed-loop networks. The purchase price will be principally funded through the company’s existing credit facilities.

Multi Service is headquartered in Overland Park, Kansas and has 360 employees. The company processes more than eight million transactions annually and has 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.


Nicolaj Kofoed, Blue Energy Partners. Blue Energy Partners appoints Nicolaj Kofoed as group treasurer  

Bunker firm strengthens treasury function as banking relationships and funding needs grow.

Bunker Partner logo. Bunker Partner seeks trainee lawyer for Athens office  

Role offering the opportunity to a law graduate to gain practical experience in maritime law.

Type approval test (TAT) for H22CDF-GA engine. HD Hyundai gains type approval for low-pressure ammonia dual-fuel engine  

HHI-EMD completes type approval testing for its H22CDF-GA engine, expanding its ammonia engine portfolio to two fuel-supply technologies.

Moataz Abdelrahman, Flex Commodities. Flex Commodities appoints Moataz Abdelrahman as senior marine fuels trader  

Dubai-based trading firm adds senior trader to expand marine fuels and bunker trading activities across the Middle East.

Container vessel manoeuvring in port. Alternative-fuel ship orders outpace port infrastructure, LR report finds  

Lloyd's Register study shows methanol and ammonia bunkering infrastructure lagging behind newbuild orders for alternative-fuel vessels.

UEC60LSJ ammonia-fuelled engine render. J-ENG secures orders for four ammonia-fuelled engines under Japanese PCTC project  

Vessels form part of plan to build four ammonia-fuelled car carriers, a dedicated bunkering vessel and supply chain.

Hanwha Power receives ABS AiP for battery-powered containership design. ABS grants AIP to Hanwha Power for 1,700-TEU battery-powered container ship  

Design uses roughly 151 MWh of swappable battery storage for fully electric propulsion on a container vessel.

Peter Krahenbuhl, WinGD. WinGD signs first licence deal with HD Hyundai Marine Engine to expand Korean production  

Mid-bore engine portfolio gains new production route into Korea's bulk carrier and tanker newbuild markets.

ONE Symphony naming ceremony. Ocean Network Express names ammonia- and methanol-ready newbuild ONE Symphony  

Vessel features conventional diesel main engine, with concept designs approved for possible future conversion to methanol or ammonia.

Sing Fuels logo. Sing Fuels seeks Asia-based supply trader to bolster bunker procurement team  

Singapore bunkering firm is recruiting a supply trader to manage marine fuel purchasing across Asia.