WEX extends partnership with Enterprise Fleet Management

PORTLAND, Maine - WEX Inc. (NYSE: WEX), a global commerce platform with a market capitalization of $4.4 billion, has announced the renewal of its long-standing partnership with Enterprise Fleet Management, a significant player in the fleet solutions market. The two companies have agreed to a 10-year extension of their collaboration, which originally began in April 1993. According to InvestingPro data, WEX maintains strong profitability with a 72.4% gross profit margin and annual revenues of $2.6 billion.

Under the extended agreement, WEX will continue to provide fuel cards to Enterprise Fleet Management customers. These cards are designed to help businesses monitor and control fuel-related expenses. This arrangement is part of a suite of comprehensive solutions offered by Enterprise Fleet Management to its clientele. InvestingPro analysis indicates WEX is currently trading below its Fair Value, suggesting potential upside opportunity. Subscribers can access 8 additional ProTips and detailed financial metrics in the comprehensive Pro Research Report.

Brian Fournier, Americas Senior Vice President & General Manager at WEX, highlighted the growth and mutual trust developed over the 32-year partnership with Enterprise. Fournier expressed pleasure in continuing the relationship, emphasizing the alignment of service-oriented cultures and commitment to future innovation.

Enterprise Fleet Management, an affiliate of Enterprise Mobility, operates more than 60 locations across the United States and Canada, supporting a fleet of over 900,000 vehicles. The company provides fleet management services to a variety of clients, including companies, government agencies, and organizations. Dain Giesie, Vice President of Business Development at Enterprise Fleet Management, reaffirmed the shared commitment to world-class service and creating value through customized fleet strategies.

While the press release contains forward-looking statements regarding the expected benefits of the partnership, it is important to note that these are not guarantees of future performance and involve known and unknown risks and uncertainties.

The renewal of this partnership signifies the ongoing collaboration between two industry leaders in the fleet management space and their shared dedication to providing innovative solutions to meet the evolving needs of the industry.

This news is based on a press release statement from WEX.

In other recent news, WEX Inc. has completed a significant tender offer, repurchasing approximately 4.9 million shares at a price of $154 per share, which totals around $750 million. This buyback represents about 12.5% of the company’s outstanding shares and was funded through additional debt. Keefe, Bruyette & Woods maintained an Outperform rating on WEX, highlighting a potential 3% increase in earnings per share for 2025 due to the tender offer. BofA Securities also adjusted its price target for WEX to $164, maintaining a Neutral stance, and noted that the company is unlikely to pursue further buybacks in 2025, focusing instead on debt reduction.

Additionally, WEX issued $550 million in senior notes and amended its credit agreement to support the tender offer and other financial obligations. The notes, with a 6.500% interest rate, are set to mature in 2033, and the company has also secured a $450 million Incremental Term Loan B-3 Facility. WEX’s CEO, Melissa Smith, has reiterated the company’s commitment to growth and confidence in its long-term value, with the tender offer reflecting this outlook.

Analysts from Keefe, Bruyette & Woods expressed optimism about the tender offer’s completion, seeing it as a positive indicator of management’s confidence in WEX’s business prospects. BofA Securities expects WEX to focus on reducing leverage over the next 12 to 18 months, following the tender offer. This financial maneuvering underscores WEX’s proactive approach to capital management and enhancing shareholder value.

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