WEX to buy European ExxonMobil fuel card program
WEX Inc. announced plans to acquire a European fuel card business from ExxonMobil, furthering the South Portland-based company’s reach into foreign markets.
The pending deal would give the company’s European arm, WEX Europe Services Ltd., the operations, funding, pricing and sales and marketing operations of ExxonMobil’s Esso Card program in nine countries in Europe. WEX estimates that portfolio would add around $35 million to its annual revenue.
The company said in a press release it expects to sign a purchase-and-sale agreement for the deal that it projects will be completed in late 2014 or early 2015. It would also include a long-term supply agreement with ExxonMobil, to serve current and future fuel card customers. WEX said it expects the investment, which is expected to occur over two years, would reduce its 2014 earnings by $10 million to $13 million after taxes.
Late last month, WEX President Melissa Smith told Mainebiz that international operations make up around 15% of the company’s business and she expects that to grow through 2014. CEO Mike Dubyak, who hands over the CEO reins to Smith on Jan. 1, said in a press release that the ExxonMobil acquisition plans represent a “significant milestone” for the company, as the deal stands to increase WEX’s European presence.
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