World Kinect to acquire Universal Weather’s trip support division for $220m

MIAMI - World Kinect Corporation (NYSE:WKC), a $2.2 billion market cap company with a solid 3.65% dividend yield, announced Wednesday it has signed a definitive agreement to acquire the Trip Support Services division of Universal Weather and Aviation for approximately $220 million. According to InvestingPro data, the company maintains a "GOOD" financial health score, suggesting strong positioning for this strategic acquisition.

The transaction includes $160 million in cash payable at closing and $60 million payable over four years, according to a company press release. The deal size represents approximately 10% of World Kinect’s current market capitalization.

Houston-based Universal Weather provides trip support services for business and general aviation customers globally, with expertise in international travel regulations, logistics, and supply chain management.

The acquisition will expand World Kinect’s ability to deliver flight operations support including flight planning, overflight permits, and ground support services at more than 3,000 airports worldwide.

"This strategic move complements our fuel business and enhances our ability to deliver comprehensive flight operations support," said John P. Rau, Chief Operating Officer of World Kinect.

The company expects the deal to be approximately 7% accretive to adjusted earnings per share in the first year after closing. World Kinect anticipates achieving about $15 million in annual net cost synergies by the end of the second year through operational efficiencies and integrated platforms. For deeper insights into World Kinect’s financial metrics and additional analysis, InvestingPro subscribers have access to over 30 exclusive financial indicators and professional tips.

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

Miami-headquartered World Kinect provides energy management services to customers in aviation, marine, and land-based transportation sectors, along with natural gas and power supply in the United States and Europe.

In other recent news, World Kinect Corporation has announced an 18% increase in its quarterly cash dividend, raising it to $0.20 per share from the previous $0.17. This move underscores the company’s commitment to returning capital to shareholders, as highlighted by President and CFO Ira M. Birns, who noted that nearly $500 million has been returned to shareholders over the past five years through dividends and share repurchases. Additionally, World Kinect has appointed Greg Piper to its Board of Directors. Piper brings over 35 years of experience in the global energy, commodity, and agriculture sectors, enhancing the board with his extensive expertise in operations, mergers and acquisitions, and business development. These recent developments reflect World Kinect’s strategic efforts to strengthen its leadership and enhance shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.