Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) announced that it had signed a definitive agreement to sell its MEGTEC and Universal businesses to Dürr AG (“Dürr”) for $130 million, subject to adjustment.
Proceeds from the transaction will largely be used to reduce outstanding balances under the Company’s bank credit facilities, improving its balance sheet and financial flexibility. Going forward, the Company’s strategic focus will continue to be on optimizing its market-leading portfolio of equipment, technology and services for the power generation industry and driving efficiencies and cost reductions throughout the organization.
As part of the Dürr organization, these businesses will be well positioned to continue to serve their customers around the world with high-quality products.
The sale is expected to close in third quarter 2018 and is subject to the satisfaction of customary closing conditions.
William Blair & Company LLC acted as financial advisor and Jones Day acted as legal advisor to B&W in connection with the transaction.
About B&W
Headquartered in Charlotte, N.C.,
Babcock & Wilcox is a global leader in energy and environmental
technologies and services for the power and industrial markets, and has
been transforming our world for over 150 years. Follow us on Twitter @BabcockWilcox
and learn more at www.babcock.com.
Forward-Looking Statements
B&W cautions that this
release contains forward-looking statements, including, without
limitation, statements relating to actions to improve liquidity, enhance
efficiencies and reduce costs. These forward-looking statements are
based on management’s current expectations and involve a number of risks
and uncertainties, including, among other things, our ability to
continue as a going concern; our ability to obtain and maintain
sufficient financing to provide liquidity to meet our business
objectives, surety bonds, letters of credit and similar financing; the
highly competitive nature of our businesses; general economic and
business conditions, including changes in interest rates and currency
exchange rates; general developments in the industries in which we are
involved; cancellations of and adjustments to backlog and the resulting
impact from using backlog as an indicator of future earnings; our
ability to perform contracts on time and on budget, in accordance with
the schedules and terms established by the applicable contracts with
customers; failure by third-party subcontractors, joint venture partners
or suppliers to perform their obligations on time and as specified; our
ability to realize anticipated savings and operational benefits from our
restructuring plans, and other cost-savings initiatives; our ability to
successfully integrate and realize the expected synergies from
acquisitions; our ability to successfully address productivity and
schedule issues in our Renewable segment, including the ability to
complete our Renewable energy projects within the expected time frame
and the estimated costs; willingness of customers to waive liquidated
damages or agree to bonus opportunities; our ability to successfully
partner with third parties to win and execute renewable projects;
changes in our effective tax rate and tax positions; our ability to
maintain operational support for our information systems against service
outages and data corruption, as well as protection against cyber-based
network security breaches and theft of data; our ability to protect our
intellectual property and renew licenses to use intellectual property of
third parties; our use of the percentage-of-completion method of
accounting; the risks associated with integrating businesses we acquire;
our ability to successfully manage research and development projects and
costs, including our efforts to successfully develop and commercialize
new technologies and products; the operating risks normally incident to
our lines of business, including professional liability, product
liability, warranty and other claims against us; changes in, or our
failure or inability to comply with, laws and government regulations;
difficulties we may encounter in obtaining regulatory or other necessary
permits or approvals; changes in, and liabilities relating to, existing
or future environmental regulatory matters; our limited ability to
influence and direct the operations of our joint ventures; potential
violations of the Foreign Corrupt Practices Act; our ability to
successfully compete with current and future competitors; the loss of
key personnel and the continued availability of qualified personnel; our
ability to negotiate and maintain good relationships with labor unions;
changes in pension and medical expenses associated with our retirement
benefit programs; social, political, competitive and economic situations
in foreign countries where we do business or seek new business; the
possibilities of war, other armed conflicts or terrorist attacks; and
our ability to successfully consummate the sale of our MEGTEC and
Universal businesses, as well as any other non-core assets, within the
expected timeframes or at all. If one or more of these risks or other
risks materialize, actual results may vary materially from those
expressed. For a more complete discussion of these and other risk
factors, see B&W’s filings with the Securities and Exchange Commission,
including our most recent annual report on Form 10-K and subsequent
quarterly reports on Form 10-Q. B&W cautions not to place undue reliance
on these forward-looking statements, which speak only as of the date of
this release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by applicable
law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180606005551/en/
Contacts:
Investors:
Chase Jacobson,
704-625-4944
Vice President, Investor Relations
investors@babcock.com
or
Media:
Ryan
Cornell, 330-860-1345
Public Relations
rscornell@babcock.com