Expands Business and General Aviation global fuel portfolio
World Fuel Services Corporation has announced that a wholly-owned subsidiary of the company has signed a definitive agreement with Universal Weather and Aviation, Inc. ('Universal') to acquire Universal’s UVair fuel business.
The total purchase price of approximately $170m, a portion of which is payable over three years, will be funded through cash-on-hand and liquidity available through the company’s existing unsecured credit facility.
UVair, headquartered in Houston, Texas, serves business and general aviation customers at more than 5,000 locations worldwide. While Universal will maintain its international trip planning services business, the agreement to purchase the UVair fuel business also includes an agreement for Universal to work exclusively with World Fuel to provide fuel supply to their customers.
“We are excited to announce this strategic acquisition, which will further enhance our global business and general aviation fuel platform,” said Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “We look forward to welcoming UVair’s fuel customers and providing them and Universal’s international trip planning customers with access to our best-in-class global fuel supply network.”
“This acquisition demonstrates our commitment to leveraging our strong balance sheet and solid liquidity profile to drive incremental growth through strategic and synergistic acquisitions in our core businesses,” said Ira M. Birns, executive vice president and chief financial officer.
In the first twelve months, the transaction is expected to be $0.14 to $0.17 accretive to earnings per share on a GAAP basis and non-GAAP accretion, which excludes the impact of one-time acquisition-related expenses, is expected to be $0.16 to $0.19 per share.
The transaction is subject to customary closing conditions and is expected to be completed by the end of the year.
BlueSky Business Aviation News | 29th August 2019 | Issue #523