B&W Announces Agreement to Sell MEGTEC and Universal
June 06 2018 - 6:00AM
Business Wire
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&WHeadquartered 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 StatementsB&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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180606005551/en/
Babcock & WilcoxInvestors:Chase Jacobson,
704-625-4944Vice President, Investor
Relationsinvestors@babcock.comorMedia:Ryan Cornell,
330-860-1345Public Relationsrscornell@babcock.com
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