Team, Inc. Completes Sale of Quest Integrity Business
November 01 2022 - 4:45PM
Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”),
a global leading provider of integrated, digitally-enabled asset
performance assurance and optimization solutions, announced today
the closing of the previously disclosed sale of its Quest Integrity
business to Baker Hughes, an energy technology company that
provides solutions to energy and industrial customers worldwide,
for approximately $279 million, reflecting certain estimated
post-closing adjustments. The net proceeds to the Company (after
payment of transaction related expenses and certain other fees)
will be approximately $270 million. The Company intends to use
approximately $238 million of the proceeds to pay down term debt
and to pay certain fees associated with that repayment and related
accrued interest, with the remainder reserved for general corporate
purposes.
Keith Tucker, TEAM’s Interim Chief Executive
Officer, stated, “We are pleased to close the Quest Integrity
transaction, which represents an important step in our plan to
refocus TEAM on its core Inspection and Heat Treating and
Mechanical Services businesses. The cash proceeds provide for a
substantial debt paydown that significantly strengthens our balance
sheet and improves our financial flexibility while we continue to
execute on our strategic initiatives designed to improve
profitability and cash flow. Looking ahead, we are experiencing
higher activity levels in our core businesses and remain excited
about TEAM’s prospects for the future, particularly as operational
and strategic changes begin to positively impact results. We expect
further improvements as our action plan accelerates, giving us
increased confidence in our ability to enhance shareholder
value.”
Robert W. Baird & Co served as the exclusive
financial advisor to TEAM on the transaction. Kirkland & Ellis
LLP served as TEAM’s legal counsel.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc.
is a global leading provider of integrated, digitally-enabled asset
performance assurance and optimization solutions. We deploy
conventional to highly specialized inspection, condition
assessment, maintenance and repair services that result in greater
safety, reliability, and operational efficiency for our client’s
most critical assets. Through locations in more than 20 countries,
we unite the delivery of technological innovation with over a
century of progressive, yet proven integrity and reliability
management expertise to fuel a better tomorrow. For more
information, please visit www.teaminc.com.
Certain forward-looking information contained
herein is being provided in accordance with the provisions of the
Private Securities Litigation Reform Act of 1995. We have made
reasonable efforts to ensure that the information, assumptions, and
beliefs upon which this forward-looking information is based are
current, reasonable, and complete. However, such forward-looking
statements involve estimates, assumptions, judgments, and
uncertainties. Many factors could cause actual results or outcomes
to differ materially from those addressed in the forward-looking
information. Although it is not possible to identify all of these
factors, they include, among others, the Company’s ability to hire
a new chief executive officer in the near future, if necessary; the
duration and magnitude of accidents, extreme weather, natural
disasters, and pandemics (such as COVID-19) and related economic
effects, the Company’s liquidity and ability to obtain additional
financing; the Company’s ability to execute on its cost management
actions, the impact of new or changes to existing governmental laws
and regulations and their application, including tariffs and
COVID-19 vaccination requirements; the outcome of tax examinations,
changes in tax laws, and other tax matters; foreign currency
exchange rate and interest rate fluctuations; the Company’s ability
to successfully divest assets on terms that are favorable to the
Company; the Company’s ability to repay, refinance or restructure
its debt and the debt of certain of its subsidiaries; anticipated
or expected purchases or sales of assets; and such known factors as
are detailed in the Company’s Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, each as filed
with the Securities and Exchange Commission, and in other reports
filed by the Company with the Securities and Exchange Commission
from time to time. Accordingly, there can be no assurance that the
forward-looking information contained herein, including statements
regarding the Company’s financial prospects and the implementation
of cost saving measures, will occur or that objectives will be
achieved. We assume no obligation to publicly update or revise any
forward-looking statements made today or any other forward-looking
statements made by the Company, whether as a result of new
information, future events or otherwise, except as may be required
by law.
Contact: Nelson HaightSenior Vice
President and Chief Financial Officer (281) 388-5521
Team (NYSE:TISI)
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