Babcock & Wilcox Announces Closing of Previously Announced Sale of its Italian and Swedish Businesses

Rhea-AI Summary

Babcock & Wilcox (NYSE: BW) has completed the previously announced sale of its Italian subsidiary SPIG S.p.A. and Swedish unit Babcock & Wilcox Vølund AB (formerly Götaverken Miljö AB) to AUCTUS Capital Partners AG for approximately $40 million, subject to customary adjustments and expenses. The company, headquartered in Akron, Ohio, continues to operate as a leader in energy and environmental products and services for power and industrial markets worldwide.

Positive

• Sale of Italian and Swedish businesses generates approximately $40 million in proceeds

Negative

• Divestment of international operations reduces company's global market presence

Insights

Financial Analyst

The $40 million divestiture of SPIG and Vølund AB represents a strategic move to streamline B&W's operations and strengthen its balance sheet. For a company with a market cap of $224.5 million, this transaction is significant, representing approximately 17.8% of its market value. The sale of these European subsidiaries should help reduce operational complexity and associated costs, potentially improving profit margins. Key implications:

• Immediate cash injection to strengthen financial position
• Reduced exposure to European market volatility
• Simplified organizational structure focusing on core markets

This transaction aligns with industry trends of companies streamlining their international operations to focus on core competencies and improve operational efficiency.

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox Enterprises, Inc. (“B&W” or the “Company”) (NYSE: BW) announced the closing of the previously announced sale of the Italy-based SPIG S.p.A. (SPIG) group of companies and Sweden-based Babcock & Wilcox Vølund AB — formerly known as Götaverken Miljö AB (GMAB) — to AUCTUS Capital Partners AG for approximately $40 million, subject to customary adjustments and expenses.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the closing of the previously announced sale of the Italy-based SPIG S.p.A. group of companies and Sweden-based Babcock & Wilcox Vølund AB, formerly known as Götaverken Miljö AB. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031321646/en/

Investor Contact:

Investor Relations

Babcock & Wilcox

704.625.4944

investors@babcock.com

Media Contact:

Ryan Cornell

Public Relations

Babcock & Wilcox

330.860.1345

rscornell@babcock.com

Source: Babcock & Wilcox Enterprises, Inc.

FAQ

How much did Babcock & Wilcox (BW) sell its Italian and Swedish businesses for?

Babcock & Wilcox sold its Italian and Swedish businesses to AUCTUS Capital Partners AG for approximately $40 million, subject to customary adjustments and expenses.

Which companies did Babcock & Wilcox (BW) sell to AUCTUS Capital Partners?

Babcock & Wilcox sold SPIG S.p.A. (Italy-based) and Babcock & Wilcox Vølund AB, formerly known as Götaverken Miljö AB (Sweden-based).

When did Babcock & Wilcox (BW) complete the sale of its Italian and Swedish operations?

Babcock & Wilcox announced the closing of the sale of its Italian and Swedish businesses as indicated in the press release.