CAMBRIDGE, Ontario--(EON: Enhanced Online News)--BWX Technologies, Inc. (NYSE:BWXT) announced today that its subsidiary BWXT Canada Ltd. (BWXT Canada) has completed its acquisition of the GE Hitachi Nuclear Energy Canada Inc. (GEH-C) joint venture, which has been re-named BWXT Nuclear Energy Canada Inc. (BWXT NEC).
“We are joining a world-class nuclear technology company that has a clear vision and growth strategy that will bring value to our employees and our customers”
The terms of the transaction are not being disclosed. The transaction is expected to be accretive to BWXT’s 2017 earnings. Excluding the effects of purchase accounting over the next couple of years, GEH-C’s operating margins compare favorably with the 10 percent margins of the overall BWXT Nuclear Energy segment.
A leading supplier of fuel, fuel handling systems, tooling delivery systems and replacement components for CANDU® reactors, BWXT NEC will now operate as a subsidiary of BWXT Canada and will maintain its current locations and management team, including President Mark Ward, who will lead the subsidiary.
“We are very pleased to welcome the talented employees of GEH-C to BWXT, and we are committed to a smooth integration process for both our employees and our customers,” said John MacQuarrie, President of BWXT Canada. “This acquisition signals our strong commitment to the CANDU® market and positions us to better serve our customers with more capability and increased value.”
“We are joining a world-class nuclear technology company that has a clear vision and growth strategy that will bring value to our employees and our customers,” said Mark Ward, President of BWXT NEC. “We are excited about this new chapter and to begin working as part of the BWXT family.”
With the completion of the acquisition, BWXT Canada and BWXT NEC now employ a total of approximately 850 employees at four major operating sites across Ontario.
About BWXT Canada Ltd.
BWXT Canada Ltd. (BWXT Canada) has over 60 years of expertise and experience in the design, manufacturing, commissioning and service of nuclear power generation equipment. This includes CANDU ® and Pressurized Water Reactor steam generators, nuclear fuel and fuel components, critical plant components, parts and related plant services. Headquartered in Cambridge, Ontario, BWXT Canada has approximately 850 employees at locations in Cambridge, Peterborough, Toronto and Arnprior, Ontario. BWXT Canada is a subsidiary of BWX Technologies, Inc. (NYSE:BWXT). BWXT is a leading supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, fuel and services for the commercial nuclear power industry. Learn more at www.BWXT.com.
Forward Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to the closing of the GEH-C acquisition, anticipated benefits and impacts of the acquisition, and management’s plans and expectations regarding the operations of GEH-C. These forward-looking statements involve a number of risks and uncertainties, including, among other things, our ability to integrate the business following closing, potential disruptions in our business as a result of the acquisition or integration, our ability to realize identified benefits and synergies associated with the acquisition, loss of key employees and adverse changes in the commercial nuclear industry. If one or more of these or other risks materialize, actual results may vary materially from those expected. 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, 2015 and subsequent quarterly 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 hereof, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.