MIAMI, March 12, 2024—(BUSINESS WIRE)–World Kinect Corporation (NYSE: WKC) announced today that it has signed a definitive agreement to sell Avinode Group, the world’s leading air charter rental platform, and its portfolio of aviation FBO software products to CAMP Systems International , Inc., a wholly owned subsidiary of Hearst, for approximately $200 million in cash.
“This sale represents another step in sharpening our portfolio while generating a solid return,” said Michael J. Kasbar, President and Chief Executive Officer. “We look forward to providing an update at our upcoming Investor Day on our unique position in the markets in which we operate and our clear strategy for seizing opportunities in our three business segments.”
“In the short term, we plan to use the net proceeds from this strategic sale to pay down debt, reducing our annual interest rate by approximately $10 million,” said Ira M. Birns, executive vice president and chief financial officer. “Long-term, this transaction should provide us with additional liquidity to invest in our core distribution platform and new sustainability offerings.”
The closing of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed within the next 60 days.
The company will provide more details related to this transaction at tomorrow’s Investor Day program, which will begin at 9:00 am ET at the JW Marriott Essex House in New York, and will also be available via webcast. At the event, World Kinect executives will also discuss the company’s growth strategy and financial outlook, including medium-term financial goals to drive attractive long-term shareholder returns. Participants can access the live stream or participate in person by registering via the following link https://irday.worldkinect.com/registration. A replay of the webcast will be available on our Investor Relations website at https://ir.worldkinect.com.
About World Kinect Corporation
Headquartered in Miami, Florida, World Kinect Corporation (NYSE: WKC) is a global energy management company providing fulfillment and related services to more than 150,000 customers in the aerospace, marine and ground transportation sectors. We also supply natural gas and electricity in the United States and Europe along with a growing suite of other sustainability-related products and services.
For more information, visit https://corp.worldkinect.com.
Information relating to forward-looking statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe”, “anticipate”, “expect”, “estimate”, “project”, “could”, “would”, “will”, “will”, “will continue”, ” plan” or words or phrases of similar meaning. Specifically, this release includes forward-looking statements regarding the transaction with CAMP Systems International, Inc. and our use of the proceeds after the expected completion of such transaction. Our forward-looking statements are qualified in their entirety by the cautionary statements and risk factor disclosures contained in our filings with the Securities and Exchange Commission (“SEC”), including our most recent Annual Report on Form 10-K filed with the SEC. Actual results may differ materially from any forward-looking statements due to risks and uncertainties, including but not limited to: the creditworthiness of customers and counterparties and our ability to collect receivables and settle derivative contracts; changes in energy or commodity market prices or extremely high or low fuel prices that continue for an extended period of time; unfavorable conditions in the industries in which our clients work; our inability to effectively mitigate certain financial and other risks associated with derivatives and our physical fuel products; our ability to achieve the expected level of benefits from our restructuring activities and cost reduction initiatives; relations with our employees and possible labor disputes related to employees covered by collective agreements; our failure to comply with the restrictions and covenants governing our outstanding indebtedness; the impact of cyber and other incidents related to information security; changes in the political, economic or regulatory environment generally and in the markets in which we operate, such as current conflicts in Eastern Europe and the Middle East; greenhouse gas reduction programs and other environmental and climate change regulations adopted by governments around the world, including cap-and-trade regimes, carbon taxes, increased efficiency standards and renewable energy mandates, each of which could increase our operating and compliance costs , as well as negatively impact our fuel sales; changes in credit terms provided to us by our suppliers; non-performance by suppliers with respect to sales obligations and by customers with respect to purchase obligations; non-performance of third-party services; our ability to effectively integrate and derive benefits from acquired businesses; our ability to meet the financial projections associated with our operating plan; lower than expected cash flows and revenues, which could reduce our ability to realize the value of recorded intangible assets and goodwill; availability of cash and sufficient liquidity to fund our working capital and strategic investments; exchange rate fluctuations; inflationary pressures and their impact on our customers or the global economy, including sudden or significant increases in interest rates or a global recession; our ability to effectively utilize technology and operating systems and realize anticipated benefits; failure to meet fuel and other product specifications agreed with our customers; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational damage due to negative publicity resulting from spills, environmental pollution or public perception of climate change impacts by us or other companies in our industry; risks associated with working in high-risk locations, including supply disruptions, border closures and other logistical difficulties that arise when working in these areas; uninsured or underinsured losses; seasonal variability that adversely affects our revenues and results of operations, as well as the impact of natural disasters, such as earthquakes, hurricanes and wildfires; decline in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in US or foreign tax laws, interpretations of such laws, changes in the mix of taxable income between different tax jurisdictions or adverse results of tax audits, assessments or disputes; our failure to generate sufficient future taxable profit in jurisdictions with significant deferred tax assets and net operating loss carryforwards; changes to multilateral conventions, treaties, tariffs or other arrangements between or among sovereign nations, including the UK’s exit from the European Union; our ability to comply with US and international laws and regulations, including those relating to anti-corruption, economic sanctions programs and environmental issues; the outcome of litigation, regulatory investigations and other legal matters, including related legal and other costs; and other risks described from time to time in our SEC filings. New risks emerge from time to time and it is not possible for management to predict all such risk factors or assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise, except as required by law.
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Contacts
Ira M. Birns, Executive Vice President and Chief Financial Officer
Elsa Ballard, Vice President of Investor Relations and Communications