The Babcock & Wilcox Company (B&W), an energy service provider, began taking steps last week to split into two stand-alone companies.
Babcock & Wilcox Enterprises, a newly created subsidiary that will include the company’s power-generation business, filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission.
“We’ve received significant positive feedback on this decision from investors, customers and other stakeholders,” Babcock & Wilcox Company CEO Jim Ferland said. “We should be in a position to close the transaction on schedule by midsummer.”
The Power Generation Group, which includes B&W’s fossil fuels, renewables, power services and environmental divisions, will keep the B&W name and will be based in Charlotte, North Carolina.
The Nuclear Operations Group, consisting of B&W’s government contracting, Generation mPower and other nuclear businesses, will become BWX and will be based in Lynchburg, Virginia.
“Since becoming an independent company in 2010, the B&W board and management team have pursued and successfully capitalized on a number of opportunities to improve performance and increase value for our shareholders,” Ferland said in 2014. “We believe that separating the Power Generation and Government & Nuclear Operations businesses is the next logical step to unlock even greater value for B&W shareholders,”
The Babcock & Wilcox Company had a strong year in 2014. Industrial Info is tracking $5.69 billion in B&W projects at power facilities fired by coal, waste and natural gas, and $10 million in projects at a nuclear plant that supplies the U.S. Navy.
