US-based engineering services company BWXT Technologies has agreed to acquire Canadian nuclear services company Kinectrics for $525m.
The acquisition includes Kinectrics' net pension and debt liabilities, as well as estimated transaction expenses.
The move aims to bolster BWXT's commercial operations segment by broadening its product and service offerings in the global nuclear power and radiopharmaceutical industries.
Post-acquisition, Kinectrics will operate as a subsidiary of BWXT, with its financial results incorporated within the commercial operations segment.
The acquisition is part of BWXT's strategic response to the growing demand for nuclear projects and services globally. It will enhance BWXT's capabilities in the commercial nuclear power market by integrating Kinectrics' comprehensive lifecycle support services.
The deal will also reinforce BWXT's presence in the CANDU [a registered trademark of Atomic Energy of Canada Limited, which stands for Canada Deuterium Uranium] reactor market and extend its reach into the US and selected international markets.
BWXT commercial operations president John MacQuarrie stated: “This acquisition expands our ability to deliver end-to-end solutions to existing and new customers more efficiently. 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, revolutionising oncology.”
Employing more than 1,300 professionals worldwide, Kinectrics operates two core business areas, commercial power services and nuclear medicine.
Its commercial power services cover the entire nuclear power plant lifecycle, including design, operational support, maintenance and reliability services for transmission and distribution.
The nuclear medicine division focuses on isotope production for the radiopharmaceutical industry, including its joint venture Isogen with Framatome.
The acquisition is expected to almost double the workforce of BWXT's commercial operations division and will introduce new expertise in lifecycle management, specialised plant services and engineering. This will support BWXT's growth in North American and international nuclear markets.
Targeted to close by mid-2025, the acquisition is anticipated to modestly increase BWXT's earnings, excluding one-time costs related to purchase accounting.
In April 2024, BWXT announced a $60m expansion of its Cambridge manufacturing plant in Ontario, which is expected to create 200 long-term jobs. The project is scheduled to be completed in mid-2026.
"BWXT to acquire Kinectrics for $525m to expand in nuclear market" was originally created and published by Power Technology , a GlobalData owned brand.
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