Applied Science Products, Inc. 8-K 2012
FleetCor Enters Brazil with Acquisition of CTF Technologies
Atlanta, GA May 1, 2012 FleetCor Technologies, Inc. (NYSE: FLT), a global leader in providing fuel card and workforce payment products to businesses, today announced that it has signed an Arrangement Agreement to acquire CTF Technologies, Inc. (CTF) for $180 million. The transaction is expected to close in approximately 60 days.
CTF provides fuel payment processing services for over-the-road fleets, ships, mining equipment, and railroads in Brazil. CTFs payment platform links together fleet operators, two of the largest Brazilian banks, Bradesco and Itau, and the two largest Brazilian oil companies, Petrobras and Ipiranga. CTF earns revenue primarily from a recurring transaction fee paid by the oil companies who purchase the CTF system for their fleet customers under multi-year customer contracts. More than 3 billion liters of fuel were processed through the CTF system in Brazil in 2011.
We are pleased to announce the acquisition of CTF, which is consistent with our global acquisition strategy of identifying attractive assets with performance upside. We were attracted to CTF for four reasons: 1) its leading position in the fuel payments market in Brazil, one of the most attractive emerging markets in the world, 2) its strong relationships with Petrobras and Ipiranga, which combined have more than 60% market share of fuel retailing in Brazil, 3) the potential to take the CTF solution to our oil partners around the world, particularly in emerging markets where fuel theft is a significant problem, and 4) the fee based business model, whereby CTF takes virtually no credit risk. We are delighted to now be partners with Petrobras and Ipiranga and look forward to building the relationships while continuing CTFs track record of innovation, efficiency and service, said Ron Clarke, Chairman and Chief Executive Officer, FleetCor Technologies, Inc.
We are pleased to be partnering with FleetCor. We are confident that they are well positioned to help the company accelerate its growth in Brazil and throughout the world, said Arie Halpern, President of CTF Brazil.
Ron Clarke, FleetCors chairman and chief executive officer and Eric Dey, FleetCors chief financial officer, will host a conference call May 2, 2012 at 11:00 ET to discuss FleetCors acquisition. A live webcast of this conference call will be available at the Investor Relations section of FleetCors website (www.fleetcor.com). The live conference call also can be accessed by dialing (877) 941-4774 or for international callers (480) 629-9760. A replay of the webcast will be available on FleetCors website for approximately one year.
For your convenience, the conference call can be replayed in its entirety beginning from two hours after the end of the call through May 9, 2012. If you wish to listen to the replay of this conference call, please dial (877) 870-5176, or for international callers (858) 384-5517 and enter passcode 4536680.