World Fuel Services Corporation announced Monday that it agreed to pay $137 million to acquire select assets of Multi Service Corporation, a global transaction management company.
The acquisition will help World Fuel of Miami to expand its payment processing business. Multi Service processes more that eight million transactions a year including its Multi Service Fuel Card, accepted at more than 3,500 truck stops in the U.S. and Canada, and Multi Service Tolls, payment solutions for tolls, bridges and tunnels across Europe. Multi Service is headquarters in Overland Park, Kansas and has 360 employees.
World Fuel will fund the acquisition through the company’s existing credit line.
“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.”
The aquisition is expected to have a positive impact on earnings during the first year of between 12 cents and 16 cents per share, on a GAAP basis. World Fuel will record a one-time charge related to the deal of about $2.8 million in the fourth quarter. The transaction is subject to customary closing conditions and is expected to be finalized within the next month.