FleetCor Technologies Inc.’s latest acquisition puts the number of company buys at more than 40 within the past eight years as the fleet fuel card pursues a global growth strategy.
FleetCor on Dec. 13 acquired AllStar Business Solutions Ltd. from United Kingdom-based leasing company The Arval Group for $304 million (194 million pounds or 229 million euros).
Atlanta-based FleetCor already owned two other UK companies that catered to small and very large fleet businesses, but AllStar will help the company to attract “the middle of the fairway” companies in need of fuel card services, Eric Dey, FleetCor chief financial officer, tells PaymentsSource. AllStar provides corporate fuel cards to about 1 million cardholders and 40,000 customers, which are mainly small and midsize UK enterprises.
In addition, Arval and FleetCor have entered into a strategic relationship in which Arval will provide fuel card payment services to its customers through the now FleetCor-owned AllStar, says Dey.
The acquisition is in line with Fleetcor’s strategy for global growth, and it was a lucky break that a company of AllStar’s type became available, Dey says. “AllStar is a well-known UK company that has been around for 30 years,” he says, noting Arval’s owner, French bank giant BNP Paribas, was looking to divest noncore businesses.
The acquisition not only solidifies FleetCor’s foothold in the UK, but it also bolsters its global acquisition strategy, including recent deals in Mexico that analysts said boosted the company’s third-quarter performance (
FleetCor also has a presence in the United States, Canada, the Czech Republic, Slovakia and Russia, says Dey.
The company’s stock was trading at $29.74 in midday trading Dec. 13 on the New York Stock Exchange, up 2% from an opening of $29.15.
What do you think about this? Send us your feedback.
