Amec Foster Wheeler progresses with transformation plan as it completes $170m sale of CFB boiler business
As part of the company-wide transformation programme, which includes the sale of non-core assets, Amec Foster Wheeler announces that it has completed the sale of its circulating fluidised bed (CFB) boiler business to Sumitomo Heavy Industries, Ltd (SHI), for a consideration of USD, the net proceeds of which will be used to reduce net debt.
The CFB boiler business is the largest part of GPG. The remaining GPG steam generator businesses include the heat recovery steam generator and industrial boilers businesses and these are also expected to be sold during 2017.
The North American aftermarket services business, originally part of GPG, is being retained and since the beginning of 2017, has been operating as part of Amec Foster Wheeler's Power & Process business.
Amec Foster Wheeler's transformation programme was launched by its Chief Executive Officer, Jon Lewis, following a company-wide review. The core components of the transformation programme include implementing a new leaner operating model designed to be closer to projects and customers, delivering cost efficiencies across the business, a focus on improving compliance and consistency in how the business operates, refreshing the company strategy and disposing of non-core assets.
In addition to the sale of the CFB boiler business, Amec Foster Wheeler has already completed the sale of a number of smaller assets.
We have made significant progress with the company wide transformation programme that we launched last year. The completion of the sale of the CFB boiler business is a milestone in this programme. We are continuing to implement the programme enabling us to better serve our customers and strengthen the company's balance sheet.
Proceeds will be subject to typical working capital and completion adjustments.
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
Employing around 35,000 people in more than 55 countries and with 2016 revenues of £5.4 billion, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, power and process, pharma, environment and infrastructure markets.
Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.
Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.
This announcement contains statements which constitute “forward-looking statements”. Forward-looking statements include any statements related to the timing, results and success of contracts, and are generally identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “may,” “continue,” “should” and other similar expressions. Forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Amec Foster Wheeler, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Amec Foster Wheeler does not undertake to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise.