Babcock & Wilcox Enterprises, Inc. (BW) Finalizes Deal to Sell Diamond Power Division
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) has reached an agreement to divest its Diamond Power International business to the Austrian firm ANDRITZ for a total consideration of $177 million, pending customary adjustments. The deal is expected to close within 30 days and includes the transfer of around 400 employees.
An industrial engineer standing in front of a factory installation of solar energy panels.
The sale substantiates Babcock & Wilcox Enterprises, Inc. (NYSE:BW)'s renewed focus on its core thermal and environmental segments. The company is streamlining its operations to capitalize on the energy demand emerging from data centers and utility infrastructure. Earlier, it disclosed the strongest backlog in decades for its services, upgrades, and construction projects across North America.
Kenneth Young, Chairman and Chief Executive Officer, made the following statement:
'The sale of Diamond Power, which achieves annual revenues in the range of $110 million, will be transformational and will reinforce the value of our underlying assets as we re-capitalize our businesses going forward.'
The proceeds from the divestiture are reserved to support Babcock & Wilcox Enterprises, Inc. (NYSE:BW)'s tender offers of up to $70 million for its 8.125% and 6.50% Senior Notes due 2026. The tender is set to expire on July 11 and reflects the company's intention to reduce debt obligations in addition to enhancing the balance sheet ahead of a forecasted growth phase.
Investor sentiment appears cautiously optimistic, with an 82.10% uptick in stock performance over the past month, despite a prevailing Hold rating from analysts.
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) is an Ohio-based company incorporated in the energy technology and service sector. Best known for steam boilers, the company remains active in the global market and offers both conventional and renewable energy solutions.
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READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds
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