World Kinect Corporation has entered into a definitive agreement to acquire the Trip Support Services (TSS) division of Universal Weather and Aviation for $220 million. The sum includes $160 million payable at closing and $60 million over four years.

Universal Weather, based in Houston, has long provided trip support solutions for business and general aviation, specialising in travel regulations, logistics and supply chain management.

“We're excited to acquire Universal Weather's TSS division, which will significantly expand our trip support services business,” says John P. Rau, chief operating officer of World Kinect. “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,” adds Ira M. Birns, president and chief financial officer of World Kinect. “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 deal is expected to close within 60 to 90 days, subject to customary conditions, and deliver $15 million in annual cost synergies by the end of year two. World Kinect anticipates the transaction will be accretive to adjusted earnings from the first year.