B&W Acquires Universal Acoustic & Emission Technologies
– Synergistic bolt-on to industrial segment
– Expands natural gas end-market exposure
(CHARLOTTE, N.C. – January 11, 2017) – Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) has acquired Universal Acoustic & Emission Technologies, Inc. (UniversalAET), a Wisconsin-based provider of custom-engineered acoustic, emission and filtration solutions, effective today.
UniversalAET is a bolt-on acquisition for B&W MEGTEC and will be included in B&W’s Industrial operating segment. The new company will be named Babcock & Wilcox Universal and operate under the trade name B&W Universal.
UniversalAET provides custom-engineered acoustic, emission and filtration solutions to the natural gas power generation, mid-stream natural gas pipeline, locomotive and general industrial end-markets. UniversalAET employs approximately 460 people, mainly in the U.S. and Mexico. UniversalAET’s product offering includes gas turbine inlet and exhaust systems, custom silencers, filters and custom enclosures.
“UniversalAET expands our industrial environmental portfolio into noise abatement, introduces us to new end markets and customers, and gives us another avenue to serve natural gas power generation customers,” said B&W Chairman and Chief Executive Officer E. James Ferland. “This acquisition aligns with our strategy to grow our industrial market exposure and continue to increase our non-coal revenue base.”
The deal is based on an enterprise value of $55 million, subject to certain adjustments. UniversalAET is expected to generate approximately $80 million of annual revenue and to be accretive in 2017.
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
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to our acquisition of UniversalAET and its impact on our business and results of 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 successfully integrate UniversalAET and realize the expected synergies from the acquisition; the performance of UniversalAET; our ability to retain significant customers and key personnel; and overall market conditions. For a more complete discussion of other risk factors, see B&W’s filings with the Securities and Exchange Commission, including our most recent 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.
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