A subsidiary of World Fuel Services Corp. entered into an agreement to acquire UVair, the fuel business of Universal Weather and Aviation Inc., for approximately $170 million, according to an Aug. 22 news release from the Miami-based company. The transaction is expected to be completed by the end of 2019.
The payment will be funded through cash on hand and liquidity through an existing unsecured credit facility. A portion of the amount will be payable over three years.
Houston-based UVair serves business and general aviation customers with more than 5,000 locations worldwide.
The deal also includes a provision that Universal will work exclusively with World Fuel to provide fuel supply to their customers. Universal will maintain its international trip planning services business.
With the transaction, non-GAAP accretion is expected at 16 cents to 19 cents per share in the first 12 months.
