Little break from the norm today with a corporate announcement from our parent company, FleetCor:
FleetCor Technologies Inc., a leading global provider of fuel cards and parent company to Knaresborough-based The Fuelcard Company, has today announced its acquisition of AllStar Business Solutions Limited from The Arval Group for £194 million.
At present, AllStar has approximately 40 thousand customers and about one million cardholders, a large portion of who are small and medium sized enterprises. AllStar serves both business clients directly and strategic partners like Arval leasing who in turn serve their customers. AllStar fuel cards are accepted by all UK major fuel brands, including the leading supermarket chains.
In addition, Arval and FleetCor have entered into a strategic relationship where Arval will provide fuel card payment solutions to its customers through AllStar. Existing AllStar customers will see no immediate change to their service provision.
The Fuelcard Company and AllStar will continue to run as two separate businesses for the foreseeable future with The Fuelcard Company continuing to resell its existing Shell, Keyfuels, Texaco, Esso and European products. The Fuelcard Company will remain based at its North Yorkshire head quarters.
“We are pleased to announce the acquisition of AllStar, which is consistent with our global acquisition strategy of identifying attractive assets with performance upside. We believe that we can help AllStar realise its full potential, as we have in previous acquisitions, by bringing our best practices, technology and commitment to this portfolio,” said Ron Clarke, Chairman and Chief Executive Officer, FleetCor Technologies, Inc.
“We believe that this sale is a positive move for AllStar employees, partners and customers. FleetCor brings global fuel card expertise, best practices and experience to AllStar, which, we believe, will enable us to improve the products and services available to its customers,” said Andrew Blazye, Chief Executive Officer, FleetCor Europe. “The [AllStar] brand will be retained. Our intention is to run AllStar as an independent, separate business for the foreseeable future.”
“The Arval Group strategy is to offer a bundle of funding and fleet management services based on risk retention, whilst the business model for AllStar is very different as it delivers transactional fuel services. As a result, we favour a long-term partnership with a global card expert. This will allow us to focus on our core business for the benefit of our customers while continuing to deliver fuel management solutions by working with a provider that can further enhance the value proposition,” said Bart Beckers, Chief Executive Officer, Arval UK.
FleetCor financed the all cash acquisition with available cash and financing through its existing credit facilities. FleetCor expects the acquisition to be accretive to revenues and earnings in 2012. The Agreement for the sale and purchase of the entire issued share capital of AllStar Business Solutions Limited was entered into and consummated 12th December 2011 between FleetCor Technologies, Inc., its wholly-owned subsidiary, FleetCor UK Acquisition Limited, and Arval UK Group Limited, as described in FleetCor’s Current Report on Form 8-K filed with the SEC today. FleetCor intends to notify the U.K. Office of Fair Trading of this acquisition and comply with customary undertakings during the review process.
Author: Anthony Hobbs