BWX Technologies (NYSE:BWXT) said Aug. 18 that its subsidiary BWXT Canada Ltd. (BWXT Canada) has entered into a share purchase agreement to acquire all of the shares of the GE Hitachi Nuclear Energy Canada Inc. (GEH-C) joint venture.
The terms of the transaction are not being disclosed.
The acquisition announcement comes days after BWXT announced that it had been awarded a steam generator design, manufacturing and delivery contract valued at approximately C$130 million (about US$100 million) from Bruce Power for its Bruce B Unit 6 nuclear reactor in Ontario, Canada.
The transaction is expected to be completed, subject to required Canadian regulatory reviews and other closing conditions, during the fourth quarter of 2016.
The acquisition roughly doubles BWXT’s footprint in Canada and signals a long-term strategic commitment to the attractive CANDU nuclear power segment and the attendant growth opportunities related to plant life extensions.
GEH-C, a Canadian company, is a leading supplier of fuel, fuel handling systems, delivery systems and replacement components for CANDU® reactors.GEH-C employs approximately 350 employees and operates three sites in the Province of Ontario, including Peterborough, Toronto and Arnprior.
Following the completion of the transaction, GEH-C would maintain its headquarters in Peterborough, Ontario and its activities would be operated as part of BWXT Canada’s overall commercial nuclear business. John MacQuarrie, BWXT Canada’s President, will lead the combined organization and Mark Ward, GEH-C’s current President, is expected to remain a member of the leadership team.
“Upon successful closing, this acquisition would substantially enhance BWXT Canada’s current commercial nuclear product and service portfolio and allow us to service our customers with a more comprehensive suite of solutions,” said MacQuarrie.
BWXT Canada Ltd. (BWXT Canada) has supplied over 300 CANDU® and Pressurized Water Reactor (PWR) steam generators worldwide, as well as other critical plant components.