Multi Service provides a variety of transportation payment systems
Miami, Florida-based World Fuel Services Corporation [NYSE:INT] (WFS) announced Tuesday that it will acquire assets of Multi Service Corporation (Multi Service), a company that makes payment systems for fuel procurement and other transportation and retail purposes, for $137 million.
Multi Service, which is based in Oakland Park, Kansas in the U.S. and has 360 employees, specialises in fleet, government and commercial payment programs including government payment systems for global fuel procurement.
"We look forward to welcoming the Multi Service team to World Fuel," said 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."
Michael J. Kasbar, President and CEO, WFS
Multi Service will significantly expand our existing payment processing business
WFS said Multi Service is expected to produce a positive cash flow of $15 to $20 million in 2013, and will expand opportunities in all of the company's segments despite being principally reported as part of its land segment.
"We are excited to be joining a company with the reputation and financial strength of World Fuel" said Mark O'Connell, president of Multi Service.
"The ability to leverage World Fuel's global capabilities and presence should accelerate our growth opportunities throughout the world."
WFS said the transaction is expected to be completed within the next month, subject to customary closing conditions.
The deal comes just a few months after WFS completed the acquisition of the assets of another Oakland Park, Kansas-based company, CarterEnergy Corporation.
WFS made a profit of $51.5 million on revenues of $9.9 billion in Q3 2012, with its marine segment producing $54 million in profits on revenues of $3.6 billion.