World Kinect Corporation (NYSE: WKC) shares gathered steam in Wednesday’s first hour, on word that a wholly owned subsidiary of the company has signed a definitive agreement with Universal Weather and Aviation 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, 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 Chief Operating Officer John P. Rau.
“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.”
This morning’s news release reports the transaction is expected to be approximately 7% accretive to the company’s adjusted earnings per share in the first year after closing, with further accretion expected over time as synergies are realized.
WKC shares took on 23 cents to $27.28.
