Babcock & Wilcox board approves spin-off company

The Babcock & Wilcox Company board of directors approved the creation of a new public company on Monday, spinning off its Power Generation business.

The new company will be called Babcock & Wilcox Enterprises, Inc.

“Since announcing in November 2014 the board’s decision to pursue this spin-off, we have been working to prepare for a successful launch of these two companies,” Babcock & Wilcox President and Chief Executive Officer E. James Ferland said. “With strong recent performance in both businesses, there is significant momentum for the future growth and success we anticipate from both companies in their separate and important markets.”

Babcock & Wilcox Enterprises will be based in Charlotte, North Carolina, while the original company will be renamed BWX Technologies, Inc. and be headquartered in Lynchburg, Virginia.

BWX Technologies will continue the Babcock & Wilcox legacy of being the sole manufacturer of submarine and aircraft carrier nuclear reactors for the U.S. government, while Babcock & Wilcox Enterprises will focus on technologies promoting clean energy and environmental friendliness.

Shareholders will receive one share of Babcock & Wilcox Enterprises stock for every two they hold for the current company as of June 18.