World Kinect Corporation to Acquire Universal Weather and Aviation's Trip Support Services Business

World Kinect Corporation (NYSE: WKC) announced that a wholly owned subsidiary of the company has signed a definitive agreement with Universal Weather and Aviation, Inc., to acquire their Trip Support Services (TSS) division. The total purchase price is approximately $220 million, consisting of $160 million of cash payable at closing and $60 million payable over four years.

Universal Weather, headquartered in Houston, Texas, is a pioneer in trip support services with deep expertise in international travel regulations, logistics, and supply chain management. It serves business and general aviation customers globally.

“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. “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.”

“This acquisition aligns with our disciplined approach to capital allocation and strengthens a core capability within our aviation segment,” said Ira M. Birns, President and Chief Financial Officer.  “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.”

The transaction 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.  The company 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.

The transaction is subject to customary closing conditions and is expected to be completed within 60 to 90 days.