BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Canada Ltd. (BWXT Canada) has entered into a share purchase agreement to acquire all of the shares of the GE Hitachi Nuclear Energy Canada Inc. (GEH-C) joint venture.
The terms of the transaction are not being disclosed. The transaction is expected to be completed, subject to required Canadian regulatory reviews and other closing conditions, during the fourth quarter of 2016. This acquisition roughly doubles BWXT’s footprint in Canada and signals a long-term strategic commitment to the attractive CANDU® nuclear power segment and the attendant growth opportunities related to plant life extensions. The transaction is expected to be accretive within the first year and to favorably impact margins in the Nuclear Energy Segment.
GEH-C, a Canadian company, is a leading supplier of fuel, fuel handling systems, delivery systems and replacement components for CANDU® reactors. GEH-C employs approximately 350 employees and operates three sites in the Province of Ontario, including Peterborough, Toronto and Arnprior.
Following the completion of the transaction, GEH-C would maintain its headquarters in Peterborough, Ontario and its activities would be operated as part of BWXT Canada’s overall commercial nuclear business. John MacQuarrie, BWXT Canada’s President, will lead the combined organization and Mark Ward, GEH-C’s current President, is expected to remain a member of the leadership team.
“Upon successful closing, this acquisition would substantially enhance BWXT Canada’s current commercial nuclear product and service portfolio and allow us to service our customers with a more comprehensive suite of solutions,” said MacQuarrie. “The acquisition of GEH-C demonstrates BWXT Canada’s focused strategy to leverage its technology-based competencies in offering new products and services for existing customers. We look forward to the opportunity to welcome the talented employees of GEH-C to BWXT Canada.”