World Kinect Announced its Acquisition of Universal Weather and Aviation’s Trip Support Services (TSS) Division for ~ $220 Million Yesterday (Sept. 3)
The total purchase price of $220 million consists of $160 million of cash payable at closing and $60 million payable over four years.
(Miami, Florida) Global energy management company, natural gas and power supplier and sustainability services provider World Kinect Corporation (NYSE: WKC) announced yesterday (Sept. 3) that a wholly owned subsidiary of the company signed a definitive agreement with Universal Weather and Aviation, Inc. to acquire its Trip Support Services (TSS) division for a total purchase price of approximately $220 million, consisting of $160 million of cash payable at closing and $60 million payable over four years.
Universal Weather and Aviation’s Trip Support Services (TSS) division has been sold to World Kinect; photo of Universal Weather and Aviation signage courtesy of AIN.
Houston, Texas-based Universal Weather, which serves business and general aviation customers worldwide, is a pioneer in trip support services with deep expertise in international travel regulations, logistics, and supply chain management, according to yesterday’s press release from World Kinect.
The transaction, which is expected to be completed in 60-90 days, is expected to be approximately 7% accretive to the company’s adjusted earnings per share in the first year post-closing, with further accretion expected over time as synergies are realized, per World Kinect.
World Kinect expects to achieve approximately $15 million in annual net cost synergies by the end of the second year after closing, driven by operational efficiencies and integrated platforms.
“We’re excited to announce the agreement to acquire Universal Weather’s TSS division, which will significantly expand our trip support services business,” said John P. Rau, Chief Operating Officer at World Kinect’s World Fuel. “This strategic move complements our fuel business and enhances our ability to deliver comprehensive flight operations support—including flight planning, overflight permits, and ground support services—at more than 3,000 airports worldwide. We look forward to welcoming Universal’s team and believe this acquisition will bring immediate value to our customers while positioning us for continued success.”
World Kinect President and Chief Financial Officer Ira M. Burns said: “This acquisition aligns with our disciplined approach to capital allocation and strengthens a core capability within our aviation segment. This investment complements our ongoing commitment to shareholder returns through share repurchases and dividends, while also demonstrating our focus on strategically driving growth in our core business activities.”
