CHARLOTTE, N.C.--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.
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.
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.