B&W to Acquire Cooling Systems and Services Firm SPIG
23 May 2016 - 8:00PM
Business Wire
Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) has
signed a definitive agreement to acquire SPIG S.p.A. (“SPIG”), an
Arona, Italy-based global provider of custom-engineered cooling
systems and services, based on an enterprise value of €155 million,
subject to certain adjustments. B&W will webcast a discussion
of the transaction on Monday, May 23, 2016 at 8:30 a.m. ET.
SPIG will operate as a subsidiary of B&W under the trade
name of Babcock & Wilcox SPIG. Its management team will
continue to lead the company, which will maintain its headquarters
in Arona. The transaction will be funded primarily by B&W’s
existing foreign cash. The purchase is expected to be completed
during the third quarter of 2016.
“We’re excited to welcome SPIG’s employees and customers to
Babcock & Wilcox,” said B&W Chairman and Chief Operating
Officer E. James Ferland. “SPIG brings a more than 80 year heritage
of excellence in engineering and project execution to the B&W
family of businesses, and we believe B&W SPIG will be an
integral part of B&W’s continued growth worldwide.”
“We expect a smooth transition and integration process with no
business disruption,” Ferland said. “SPIG’s customers will continue
to receive the same outstanding level of service to which they’re
accustomed and will benefit from B&W’s scale and portfolio of
products and services.”
With 2015 revenues of €168 million, SPIG employs approximately
250 people in Italy, the United States, India, Turkey, China,
Russia, Brazil, Germany and South Korea. The company provides
comprehensive dry and wet cooling solutions and aftermarket
services to the power generation industry including natural
gas-fired and renewable energy power plants, as well as downstream
oil and gas, petrochemical and other industrial end markets.
SPIG’s product offering includes air-cooled (dry cooling)
systems, mechanical draft wet cooling towers and natural draft wet
cooling hyperbolic towers. SPIG also provides end-to-end
aftermarket services, including spare parts, upgrades/revamps for
existing installations and remote monitoring.
The acquisition of SPIG is consistent with B&W’s goal to
continue to grow and diversify its technology-based offerings with
new products and services that are complementary to its core
businesses in the power and industrial markets.
“The ability to offer high quality, custom-engineered cooling
systems as part of our project scope enhances the value we can
bring to our customers,” Ferland said. “SPIG’s products are
applicable to a wide variety of facilities and will provide
significant cross-selling opportunities for us in both our power
and industrial business segments. Additionally, B&W’s strong
North American footprint will help facilitate SPIG’s continued
expansion into this geographic market.”
The listen-only audio of the conference call will be broadcast
live at www.babcock.com. The dial-in number for participants in the
U.S. is (877) 201-0168; the dial-in number for participants outside
the U.S. is (647) 788-4901. The conference ID for all participants
is 18492801. A replay of this conference call will remain
accessible in the investor relations section of the Company's
website for a limited time. In addition, a presentation providing
an overview of the SPIG transaction will be posted to the investor
relations section of the Company's website.
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
our proposed acquisition of SPIG. 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 successfully consummate the acquisition of SPIG,
including satisfying closing conditions; our ability to
successfully integrate SPIG and realize the expected synergies from
the acquisition; and the performance of SPIG. For a more complete
discussion of other risk factors, see B&W’s filings with the
Securities and Exchange Commission, including its 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.
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. B&W companies employ
approximately 5,700 people around the world. Follow us on Twitter
@BabcockWilcox and learn more at www.babcock.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160523005413/en/
Babcock & WilcoxInvestors:Leslie Kass,
704-625-4944Vice President, Investor Relations and
Communicationsinvestors@babcock.comorMedia:Ryan Cornell,
330-860-1345Public Relationsrscornell@babcock.com
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