Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) has signed a definitive agreement to acquire SPIG S.p.A. (“SPIG”), an Arona, Italy-based global provider of custom-engineered cooling systems and services, based on an enterprise value of €155 million, subject to certain adjustments.
SPIG will operate as a subsidiary of B&W under the trade name of Babcock & Wilcox SPIG. Its management team will continue to lead the company, which will maintain its headquarters in Arona. The transaction will be funded primarily by B&W’s existing foreign cash. The purchase is expected to be completed during the third quarter of 2016.
With 2015 revenues of €168 million, SPIG employs approximately 250 people in Italy, the United States, India, Turkey, China, Russia, Brazil, Germany and South Korea. The company provides comprehensive dry and wet cooling solutions and aftermarket services to the power generation industry including natural gas-fired and renewable energy power plants, as well as downstream oil and gas, petrochemical and other industrial end markets.
SPIG’s product offering includes air-cooled (dry cooling) systems, mechanical draft wet cooling towers and natural draft wet cooling hyperbolic towers. SPIG also provides end-to-end aftermarket services, including spare parts, upgrades/revamps for existing installations and remote monitoring.
The acquisition of SPIG is consistent with B&W’s goal to continue to grow and diversify its technology-based offerings with new products and services that are complementary to its core businesses in the power and industrial markets.