CHARLOTTE, N.C. -- The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has signed a definitive agreement to acquire industrial processes solutions provider MEGTEC based on an enterprise value of $155 million, subject to adjustment for MEGTEC’s cash and indebtedness and certain other closing items.
MEGTEC, which employs approximately 600 people in 10 countries, will operate as B&W MEGTEC, a wholly owned subsidiary of B&W PGG. The purchase is expected to be completed by June 30, 2014.
MEGTEC, based in De Pere, Wis., designs, engineers, manufactures and services sophisticated air pollution control systems and coating/drying equipment. MEGTEC’s technologies provide a range of sustainability-focused benefits, including pollution abatement, carbon management, energy storage and recovery, and environmental compliance. In addition to the United States, the company has operations in Canada, France, Italy, Sweden, Germany, the United Kingdom, China, India and Australia, and maintains a worldwide service and replacement parts support network.
“MEGTEC is a leader in industrial environmental solutions and engineered products for energy storage and sustainability and will complement B&W PGG’s existing capabilities, while also expanding its environmental controls business beyond its traditional utility and coal customer base,” said B&W President and Chief Executive Officer E. James Ferland. “We’re excited about the U.S. and international growth opportunities that MEGTEC brings, particularly in Asia and Europe.”
“We’re pleased to join forces with MEGTEC, with its more than two decades of success in providing energy efficient environmental compliance and advanced coating/drying solutions to a variety of industries, including chemicals, pharmaceuticals, energy and automotive manufacturing,” B&W PGG President and Chief Operating Officer J. Randall Data said. “We see great opportunities to leverage each company’s technology, channels to market and other capabilities to serve new and existing customers globally.”
“This acquisition enhances B&W PGG's role as a leading environmental products and solutions provider, beyond our historical focus on utility markets, to a variety of industrial applications for customers we haven’t traditionally served,” Data said.
MEGTEC’s environmental solutions products include oxidizers, energy recovery systems, solvent recovery systems, distillation products, scrubbers, wet electrostatic precipitators (wet ESP) and other equipment for industrial applications. Its engineered products offerings include integrated custom coating and drying technologies with applications ranging from digital printing to energy storage. Additionally, MEGTEC provides aftermarket services, including equipment upgrades, process energy optimization, rebuilds and parts, for its own and competitors’ equipment, as well as preventive maintenance support.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 11,000 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.