BWXT Enters Agreement to Acquire Kinectrics, a Leading Service Provider to the Global Nuclear Market
BWX Technologies (NYSE: BWXT) has announced an agreement to acquire Kinectrics, Inc. for approximately US$525 million, including net pension and debt liabilities. Kinectrics, a leader in lifecycle management services for nuclear power and radiopharmaceutical industries, is expected to generate revenue of US$300 million in 2024.
The acquisition will strengthen BWXT's position in the CANDU reactor market and expand its presence in the U.S. and international markets. Kinectrics brings over 1,300 engineers and technical experts across 20 global sites, nearly doubling BWXT's Commercial Operations workforce.
The deal is expected to close mid-2025 and be modestly accretive to BWXT's earnings. Kinectrics will operate as a BWXT subsidiary within the Commercial Operations segment, with current CEO David Harris continuing to lead the organization.
BWX Technologies (NYSE: BWXT) ha annunciato un accordo per acquisire Kinectrics, Inc. per circa 525 milioni di dollari USA, incluse le passività nette di pensione e debito. Kinectrics, leader nei servizi di gestione del ciclo di vita per le industrie nucleari e dei radiofarmaci, si prevede genererà un fatturato di 300 milioni di dollari USA nel 2024.
L'acquisizione rafforzerà la posizione di BWXT nel mercato dei reattori CANDU e ampliará la sua presenza nei mercati americani e internazionali. Kinectrics porta oltre 1.300 ingegneri ed esperti tecnici distribuiti in 20 sedi globali, quasi raddoppiando la forza lavoro delle Operazioni Commerciali di BWXT.
Si prevede che l'affare si chiuda a metà del 2025 e che contribuisca modestamente agli utili di BWXT. Kinectrics opererà come una filiale di BWXT all'interno del segmento delle Operazioni Commerciali, con l'attuale CEO David Harris che continuerà a guidare l'organizzazione.
BWX Technologies (NYSE: BWXT) ha anunciado un acuerdo para adquirir Kinectrics, Inc. por aproximadamente 525 millones de dólares, incluidas las obligaciones netas de pensiones y deudas. Kinectrics, líder en servicios de gestión de ciclos de vida para las industrias nucleares y de radiofármacos, se espera que genere ingresos de 300 millones de dólares en 2024.
La adquisición fortalecerá la posición de BWXT en el mercado de reactores CANDU y ampliará su presencia en los mercados de EE. UU. e internacionales. Kinectrics aporta más de 1.300 ingenieros y expertos técnicos en 20 sitios globales, casi duplicando la fuerza laboral de Operaciones Comerciales de BWXT.
Se espera que el acuerdo se cierre a mediados de 2025 y que tenga un impacto positivo modesto en los beneficios de BWXT. Kinectrics operará como una subsidiaria de BWXT dentro del segmento de Operaciones Comerciales, con el actual CEO David Harris continuando al mando de la organización.
BWX Technologies (NYSE: BWXT)는 Kinectrics, Inc.를 약 5억 2500만 달러에 인수하기로 합의했다고 발표했습니다. 여기에는 순연금 및 부채 책임이 포함됩니다. Kinectrics는 원자력 및 방사성 의약품 산업의 생애주기 관리 서비스 분야의 선두주자로, 2024년에 약 3억 달러의 수익을 올릴 것으로 예상됩니다.
이번 인수는 BWXT의 CANDU 원자로 시장에서의 입지를 강화하고 미국 및 국제 시장에서의 존재감을 확대할 것입니다. Kinectrics는 전 세계 20개 사이트에 걸쳐 1,300명 이상의 엔지니어 및 기술 전문가를 보유하고 있어 BWXT의 상업 운영 인력을 거의 두 배로 늘립니다.
계약은 2025년 중반에 마감될 것으로 예상되며 BWXT의 수익에 약간 긍정적인 영향을 미칠 것으로 보입니다. Kinectrics는 상업 운영 부문의 BWXT 자회사로 운영되며 현재 CEO인 David Harris가 조직을 계속 이끌게 됩니다.
BWX Technologies (NYSE: BWXT) a annoncé un accord pour acquérir Kinectrics, Inc. pour environ 525 millions de dollars, y compris les obligations nettes de retraite et de dette. Kinectrics, un leader dans les services de gestion du cycle de vie pour les industries nucléaires et des radio-pharmaceutiques, devrait générer un chiffre d'affaires de 300 millions de dollars en 2024.
Cette acquisition renforcera la position de BWXT sur le marché des réacteurs CANDU et étendra sa présence sur les marchés américain et international. Kinectrics apportera plus de 1 300 ingénieurs et experts techniques répartis sur 20 sites à l'échelle mondiale, doublant presque la main-d'œuvre des opérations commerciales de BWXT.
On s'attend à ce que l'accord se clôture au milieu de 2025 et qu'il ait un impact positif modeste sur les bénéfices de BWXT. Kinectrics opérera en tant que filiale de BWXT au sein du segment des opérations commerciales, avec l'actuel PDG David Harris qui continuera à diriger l'organisation.
BWX Technologies (NYSE: BWXT) hat eine Vereinbarung bekannt gegeben, um Kinectrics, Inc. für etwa 525 Millionen US-Dollar zu akquirieren, einschließlich Netto-Pensions- und Schuldenverpflichtungen. Kinectrics, ein führendes Unternehmen im Bereich Lebenszyklusmanagement für die Nuklearindustrie und die Radiopharmazeutika-Industrie, wird voraussichtlich 2024 einen Umsatz von 300 Millionen US-Dollar erzielen.
Die Übernahme wird die Position von BWXT im CANDU-Reaktormarkt stärken und seine Präsenz auf den US- und internationalen Märkten ausbauen. Kinectrics bringt über 1.300 Ingenieure und technische Experten an 20 globalen Standorten mit, was die Zahl der Mitarbeiter im Geschäftsbetrieb von BWXT nahezu verdoppelt.
Der Deal wird voraussichtlich Mitte 2025 abgeschlossen und wird sich moderat positiv auf die Erträge von BWXT auswirken. Kinectrics wird als Tochtergesellschaft von BWXT im Segment der Geschäftsbetriebe operieren, während der derzeitige CEO David Harris die Organisation weiterhin leiten wird.
- US$300 million expected revenue contribution from Kinectrics in 2024
- Addition of 1,300 engineers and technical experts across 20 global sites
- Expansion into growing nuclear power and radiopharmaceutical markets
- Enhanced capabilities in CANDU reactor market and U.S. market
- Strategic positioning in Lutetium-177 supply chain
- US$525 million acquisition cost including debt and pension liabilities
- Only modest earnings accretion expected post-acquisition
- Integration risks with large workforce merger
Insights
The US$525 million acquisition of Kinectrics represents a strategic expansion for BWXT in the nuclear services sector. The deal metrics look compelling - Kinectrics' projected
This acquisition significantly strengthens BWXT's market position in two high-growth areas: nuclear power services and radiopharmaceuticals. The deal nearly doubles BWXT's Commercial Operations workforce and provides critical mass in the CANDU reactor market. The modest earnings accretion expected post-close indicates disciplined pricing, though integration costs will need careful management.
This acquisition is perfectly timed with the nuclear industry's renaissance. Kinectrics' expertise in lifecycle management services for nuclear facilities and its established position in the CANDU reactor market creates significant synergies. The combination addresses a critical industry need for comprehensive service providers capable of supporting both traditional reactors and the emerging small modular reactor (SMR) market.
The addition of Kinectrics' 1,300 engineers and technical experts across 20 global sites substantially enhances BWXT's capability to capture market share in nuclear power plant life extensions and new builds. The Lutetium-177 supply chain capabilities are particularly valuable given the growing demand for nuclear medicine applications in cancer treatment.
The radiopharmaceutical aspect of this acquisition is particularly noteworthy. Kinectrics' involvement in Lutetium-177 production since 2022 through the Isogen joint venture with Framatome positions BWXT strongly in the rapidly growing nuclear medicine market. Lutetium-177 is increasingly important in targeted cancer therapies and securing reliable production capabilities is important as demand continues to rise.
The combination of BWXT's existing nuclear expertise with Kinectrics' isotope production capabilities creates a more robust supply chain for medical isotopes, addressing a critical healthcare need. This vertical integration in the radiopharmaceutical space could provide significant competitive advantages and growth opportunities.
- Investment creates a comprehensive portfolio of end-to-end lifecycle services for customers in the small modular reactor and traditional large-scale nuclear reactor markets
- Expands the company’s presence in fast-growing areas, including clean energy, energy security and the rising demand for nuclear technologies
- BWXT to hold a conference call on January 7, 2025, at 8:30 a.m. E.T.
The acquisition is highly complementary to BWXT’s Commercial Operations segment and will enable an expanded portfolio of products and services for current and new customers in the global nuclear power and radiopharmaceutical industries. In the commercial nuclear power market, Kinectrics brings a broad suite of lifecycle support services that will further strengthen BWXT’s position in the CANDU reactor market, while increasing its exposure to the U.S. market and select international markets. In nuclear medicine, Kinectrics offers additional isotope irradiation and production technologies, and has played a critical role in the existing Lutetium-177 supply chain since 2022. Kinectrics employs over 1,300 engineers and technical experts located across its 20 sites worldwide.
“This acquisition expands our ability to deliver end-to-end solutions to existing and new customers more efficiently,” said John MacQuarrie, president of BWXT Commercial Operations. “The investment uniquely brings together two industry leaders with complementary expertise and service offerings in the growing commercial nuclear power and nuclear medicine markets. With the talented team joining from Kinectrics, we are strengthening our ability to meet our customers’ evolving needs. This includes supporting utilities as they explore ways to expand nuclear power generation through life extensions and new builds, partnering with small modular reactor designers seeking comprehensive regulatory, engineering, manufacturing, and aftermarket solutions, and collaborating with healthcare partners who require reliable isotopes for under-supplied medical isotopes revolutionizing oncology.”
Kinectrics, headquartered in
- Commercial power services provides support for all stages of the nuclear power plant lifecycle and other areas of the related grid ecosystem, including initial design and engineering, operational support and maintenance services, as well as transmission and distribution reliability services.
- Nuclear medicine includes isotope production services for the radiopharmaceutical industry, including Isogen, a joint venture between Kinectrics and Framatome.
Upon close, the acquisition will nearly double the workforce of BWXT’s Commercial Operations and expand its capabilities, including lifecycle management, specialized plant services and engineering, to support the North American and international nuclear markets.
The acquisition is targeted to close in the middle of 2025 and is expected to be modestly accretive to BWXT’s earnings, excluding purchase accounting and other one-time costs. Following the close, Kinectrics will operate as a BWXT subsidiary, and its financial results will be reported within BWXT’s Commercial Operations segment.
David Harris, President & CEO of Kinectrics, will continue to lead the organization and will report to John MacQuarrie, President of BWXT Commercial Operations.
This investment is one of BWXT’s strategic steps in response to current and anticipated demand for nuclear projects and services worldwide. Earlier this year, BWXT announced a
Conference Call
BWXT will host a conference call on January 7, 2025, at 8:30 a.m. E.T. to discuss the acquisition.
- Listen-only participants are encouraged to participate and view the supporting presentation via the internet at www.bwxt.com/investors.
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The dial-in numbers for participants are (
U.S. ) 800-715-9871 and (International) 1-646-307-1963; conference ID: 5433335. - A replay of the call will remain available on the BWXT website for a limited time.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to management’s plans and expectations for the acquisition of Kinectrics, our ability to realize the anticipated benefits of the acquisition, future revenues and demand for Kinectrics’ business, and Kinectrics’ continuing operations. 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 obtain any necessary regulatory and other approvals required for the acquisition, and competition in the market for the products and services sold by Kinectrics. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2023, and subsequent reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT 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 BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. A
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Media Contact
Monifa Miller
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519.242.8071 mamiller@bwxt.com
Investor Contact
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Vice President, Investor Relations
980.365.4300 investors@bwxt.com
Source: BWX Technologies, Inc.
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