World Kinect Corporation Announces Sale of the Avinode Group and Portfolio of Aviation Software Products
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MIAMI--(BUSINESS WIRE)--World Kinect Corporation (NYSE: WKC) announced today it has signed a definitive agreement to sell the Avinode Group, the world’s leading air charter sourcing 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, all while generating a solid return,” said Michael J. Kasbar, Chairman and Chief Executive Officer. “We look forward to providing an update on our unique position in the markets we serve and our clear strategy to capture opportunities across our three business segments at our upcoming Investor Day.”
“In the short-term, we plan to use the net proceeds from this strategic sale to repay debt, reducing our annual run rate of interest expense by approximately $10 million,” stated Ira M. Birns, Executive Vice President and Chief Financial Officer. “Longer term, this transaction should provide us with additional liquidity to invest in our core distribution platform and emerging 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.