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Summit, Bain Capital sell down stake in FleetCor Technologies

5 Dec 2012

Summit Partners and Bain Capital have sold down their stake in FleetCor Technologies, the New York-listed provider of fuel cards and workforce payment products to businesses.

The Norcross, Georgia-based company bought 3.85 million shares of FleetCor common stock at $51.91 per share pursuant to a share repurchase agreement with the two firms.

The share repurchase was effected in a private transaction and FleetCor funded the $200m aggregate purchase price with borrowings under its credit facilities, it said in a statement.

“On a pro forma basis, using actual results through September 30, 2012 and our prior guidance, the repurchase is expected to be accretive to full-year 2012 earnings by approximately $0.13 per diluted share,” said FleetCor Technologies chairman and CEO Ron Clarke.

“We believe that buying back shares from our legacy investors will help to reduce the share overhang and leaves us sufficient liquidity to execute our acquisition plans.”

FleetCor Technologies provides fuel cards and workforce payment products to businesses, serving commercial accounts across North America, Latin America and Europe.

The company listed on the NYSE in 2010 and has completed a series of secondary offerings in 2012.

Summit Partners, the company’s largest shareholder, made an initial $45m investment in the business in 2002. Since then, FleetCor’s revenues have grown 600 per cent as a result of organic growth, product and service innovation, and more than 40 acquisitions.

The firm is understood to have made about 10-times its money from the FleetCor.

In July 2005 the company received a $75m equity investment from Bain Capital and completed a recapitalisation through which it replaced its existing senior credit facility with a $130m term loan and a $30m revolving facility raised by JP Morgan Chase and PNC.

As part of the deal, FleetCor Summit Partners and Bain acquired a majority interest in the company.

Shares in FleetCor yesterday closed at $51.67 each, giving it a market capitalisation of $4.37bn.

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