Babcock & Wilcox Finalizes Sale of Italian and Swedish Divisions to AUCTUS Capital Partners for $40 Million

Babcock & Wilcox Enterprises, Inc. (B&W) has finalized the sale of its Italian and Swedish businesses, SPIG S.p.A. and Babcock & Wilcox Vølund AB, to AUCTUS Capital Partners AG for approximately $40 million. This deal marks a significant step in the company's strategy to refocus its operations and enhance its financial position.

Babcock & Wilcox Enterprises, Inc. (B&W) has finalized the sale of its Italian and Swedish businesses, SPIG S.p.A. and Babcock & Wilcox Vølund AB, to AUCTUS Capital Partners AG for approximately $40 million [1]. This strategic divestiture aligns with B&W's announced plans to reduce its long-term debt, optimize its capital structure, and focus on core businesses [1].

The sale includes the Italy-based SPIG group of companies and the Sweden-based Babcock & Wilcox Vølund AB, formerly known as Götaverken Miljö AB (GMAB) [1]. B&W will receive $40 million in cash at closing, subject to customary adjustments and expenses [1]. The deal is expected to close at the end of October, pending the satisfaction of customary closing conditions [1].

B&W's Chairman and Chief Executive Officer, Kenneth Young, stated, "This sale aligns with our previously-announced strategy to divest certain non-core businesses and assets to reduce our debt, improve our balance sheet, and increase liquidity" [1].

Young continued, "We are committed to our core Thermal, Renewable, and Environmental technologies and are investing in new technologies, including BrightLoop™ and ClimateBright™. We look forward to moving forward with these and other projects to deliver environmentally conscious, technology-driven solutions that support the global need for reliable, accessible, and affordable energy" [1].

B&W's decision to divest its Italian and Swedish businesses marks a significant step in its ongoing efforts to refocus its operations and enhance its financial position [2]. With the increasing global demand for energy and environmental solutions, B&W continues to position itself as a leader in the industry, supporting customers with its proven, reliable technologies while advancing its core and new technologies [2].

References:
[1] Babcock & Wilcox. (2024, October 10). Babcock & Wilcox Reaches Agreement to Sell Its Italian and Swedish Businesses. https://www.babcock.com/home/about/corporate/news/babcock-and-wilcox-reaches-agreement-to-sell-its-italian-and-swedish-businesses
[2] Yahoo Finance. (2024, October 10). Babcock & Wilcox Enterprises, Inc. (BW) Stock Price, News, Quote & History. https://finance.yahoo.com/quote/BW/history?p=BW