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.
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.