B&W Announces Completion of Acquisition of Industrial Products and Services Firm MEGTEC
(CHARLOTTE, N.C. – June 23, 2014) – The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has completed the acquisition of MEGTEC, a De Pere, Wis.-headquartered industrial processes solutions provider, based on an enterprise value of $155 million, subject to adjustments.
MEGTEC will operate as a subsidiary of B&W PGG under the trade name of Babcock & Wilcox MEGTEC (B&W MEGTEC). Its management team will continue with the company, and the company will continue to be headquartered in De Pere.
“We’re excited to welcome B&W MEGTEC’s employees and customers to The Babcock & Wilcox Company,” said B&W PGG President and Chief Operating Officer J. Randall Data. “Both companies have a strong heritage of technology development and innovation that we believe will provide many opportunities for diversification and growth worldwide.”
“We expect a smooth transition and integration process with no business disruption,” Data said. “B&W MEGTEC’s customers will continue to receive the same outstanding level of service to which they’re accustomed.”
B&W MEGTEC employs approximately 600 people in the United States, Canada, France, Italy, Sweden, Germany, the United Kingdom, China, India and Australia. The company designs, engineers, manufactures and services sophisticated air pollution control systems and coating and drying equipment for the industrial sector.
B&W MEGTEC’s environmental solutions products include oxidizers, energy recovery systems, solvent recovery systems, distillation systems, scrubbers, wet electrostatic precipitators (wet ESP) and other equipment for industrial applications.
Its engineered products offerings include integrated custom coating and drying technologies with applications ranging from digital printing to energy storage.
B&W MEGTEC also provides aftermarket services, including equipment upgrades, process energy optimization, rebuilds and parts, for its own and competitors’ equipment, as well as preventive maintenance support.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 11,600 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements relating to the management’s expectations for growth opportunities and the MEGTEC integration process. These forward-looking statements involve a number of risks and uncertainties, including, among other things, our ability to execute on our integration plan for MEGTEC and capitalize on new business opportunities. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's annual report on Form 10-K for the year ended December 31, 2013 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
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Public Relations Specialist
The Babcock & Wilcox Company
330.860.1345 » email@example.com
(CHARLOTTE, N.C. – May 13, 2014) – The Babcock & Wilcox Company (B&W) (NYSE:BWC) announced today that its subsidiary, Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), has signed a definitive agreement to acquire industrial processes solutions provider MEGTEC based on an enterprise value of $155 million, subject to adjustment for MEGTEC’s cash and indebtedness and certain other closing items.
MEGTEC, which employs approximately 600 people in 10 countries, will operate as B&W MEGTEC, a wholly owned subsidiary of B&W PGG. The purchase is expected to be completed by June 30, 2014.
MEGTEC, based in De Pere, Wis., designs, engineers, manufactures and services sophisticated air pollution control systems and coating/drying equipment. MEGTEC’s technologies provide a range of sustainability-focused benefits, including pollution abatement, carbon management, energy storage and recovery, and environmental compliance. In addition to the United States, the company has operations in Canada, France, Italy, Sweden, Germany, the United Kingdom, China, India and Australia, and maintains a worldwide service and replacement parts support network.
“MEGTEC is a leader in industrial environmental solutions and engineered products for energy storage and sustainability and will complement B&W PGG’s existing capabilities, while also expanding its environmental controls business beyond its traditional utility and coal customer base,” said B&W President and Chief Executive Officer E. James Ferland. “We’re excited about the U.S. and international growth opportunities that MEGTEC brings, particularly in Asia and Europe.”
“We’re pleased to join forces with MEGTEC, with its more than two decades of success in providing energy efficient environmental compliance and advanced coating/drying solutions to a variety of industries, including chemicals, pharmaceuticals, energy and automotive manufacturing,” B&W PGG President and Chief Operating Officer J. Randall Data said. “We see great opportunities to leverage each company’s technology, channels to market and other capabilities to serve new and existing customers globally.”
“This acquisition enhances B&W PGG's role as a leading environmental products and solutions provider, beyond our historical focus on utility markets, to a variety of industrial applications for customers we haven’t traditionally served,” Data said.
MEGTEC’s environmental solutions products include oxidizers, energy recovery systems, solvent recovery systems, distillation products, scrubbers, wet electrostatic precipitators (wet ESP) and other equipment for industrial applications. Its engineered products offerings include integrated custom coating and drying technologies with applications ranging from digital printing to energy storage. Additionally, MEGTEC provides aftermarket services, including equipment upgrades, process energy optimization, rebuilds and parts, for its own and competitors’ equipment, as well as preventive maintenance support.
Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 11,000 people, in addition to approximately 10,200 joint venture employees. Learn more at www.babcock.com.
Cautionary Statement Regarding Forward Looking Statements
B&W cautions that this release contains forward-looking statements, including statements regarding the expected timeframe for completing the acquisition, anticipated benefits of the acquisition and management’s plans for future operations. These forward-looking statements involve a number of risks and uncertainties, including, among other things, satisfaction of any closing conditions contained in the definitive acquisition agreement, our ability integrate the MEGTEC business into our operations, and adverse changes in the industries in which we operate or seek to expand. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2013 and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
Public Relations Specialist
The Babcock & Wilcox Company
Vice President, Treasurer and Investor Relations
The Babcock & Wilcox Company
MEGTEC Systems Becomes Affiliate to U.S. Department of Energy's Joint Center for Energy Storage Research
De Pere, Wis., U.S.A., January 21, 2014 -- MEGTEC Systems, a leading global supplier of engineered systems and environmental and energy solutions to advanced manufacturing facilities, has become an affiliate to the U.S. Department of Energy's Joint Center for Energy Storage (JCESR).
Led by Argonne National Laboratory, JCESR directs a major research initiative selecting national leaders in science and engineering from government, academia and industry to create breakthrough energy storage technology and overcome scientific and technical barriers. The organization's diverse expertise spans the full technology-development pipeline from basic research and prototype development to product engineering and market delivery. It is collaboration with affiliates such as MEGTEC Systems, that will help JCESR make rapid progress and significant advancement.
MEGTEC President and CEO, Dr. Mohit Uberoi, looks foward to the new partnership. "MEGTEC is pleased and excited to be affiliated with JCESR," Uberoi said. "We look forward to working with Argonne in speeding innovation for energy storage. We have a long and successful track record in the commercialization of new ideas."
Uberoi is also enthused to share the unique perspective and experience MEGTEC will bring to the partnership. "With the advanced work MEGTEC has done in the energy storage markets, especially for the production of lithium-ion battery electrodes and fuel cells, we have innovative solutions that will reduce manufacturing costs," he said.
It's those innovative solutions that make MEGTEC a desirable candidate for the JCESR program. Director of JCESR at Argonne Laboratories Dr. George Crabtree says, "We are pleased to include MEGTEC Systems as a JCESR affiliate. We believe MEGTEC's design, engineering and manufacturing capabilities will be a valuable resource for the JCESR team."
About JCESR: The Joint Center for Energy Storage Research (JCESR) is a major partnership that integrates researchers from many disciplines to overcome critical scientific and technical barriers and create new breakthrough energy storage technology. Led by the U.S. Department of Energy's Argonne National Laboratory, partners include national leaders in science and engineering from academia, the private sector, and national laboratories. Their combined expertise spans the full range of the technology-development pipeline from basic research to prototype development to product engineering to market delivery. Funding for JCESR is provided by the U.S. Department of Energy Office of Science. For more information, go to www.jcesr.org.
Louisiana-Pacific Selects MEGTEC CLEANSWITCH® RTO Technology
VOC Control System to be Installed at North Carolina OSB Operation
De Pere, Wis., U.S.A., January 21, 2014 -- MEGTEC Systems, Inc., announces that Louisiana-Pacific Corporation (LP) will install a MEGTEC CLEANSWITCH® RTO (regenerative thermal oxidizer) at its OSB plant in Roxboro, North Carolina, with delivery scheduled for the first quarter of 2014. The new CLEANSWITCH® RTO system, rated with a design flow of 250,000 scfm, will handle the off-gas from five direct-fired rotary drum dryers. This is the third LP plant to install a MEGTEC CLEANSWITCH® RTO system.
"LP chose the MEGTEC CLEANSWITCH® RTO to replace an outdated competitive system after a detailed analysis of multiple equipment suppliers and alternative technologies," states Rodney Schwartz, Vice President of Sales with MEGTEC. "The simplicity of the valve and the energy savings provided by structured media were two MEGTEC advantages identified by LP." Adds Schwartz, "MEGTEC's unique ability to control quality and schedule by fabricating the equipment in our own plant in De Pere, Wisconsin, compared to sub-contracting to outside fabrication shops, ensures the project timeline meets LP's requirements."
LP's Roxboro, NC operation has the capacity to produce 470 million square feet of OSB on a 3/8" basis, comprised largely of softwood furnish.
The CLEANSWITCH® RTO offers 97+ percent VOC removal, exceptional operating economy, and maintenance-friendly design as compared to other competing RTO technologies.
Louisiana-Pacific Corporation is a leading manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville, Tennessee and traded on the New York Stock Exchange under LPX. For more nformation, visit www.lpcorp.com.
Battery Innovation Center Recognizes MEGTEC Systems as
“The Battery Innovation Center chose MEGTEC’s coater/dryer system for our state-of-the-art energy storage laboratory as it offers the perfect coating and drying solution for Lithium-Ion cell fabrication and allows us to assist the industry in developing new processes associated with innovative cell designs as they work to implement new ideas into manufacturing,” LaSota explained.
MEGTEC’s Director Business Development - Advanced Materials Processing, David Ventola, stated "MEGTEC is pleased and excited to be a partner to BIC and participate in this unique collaboration to bring our capabilities to bear on speeding innovation in Energy Storage. We are looking forward to a long and successful track record to commercialization of new ideas from BIC."
A number of public and local dignitaries participated in the ceremony to recognize the significance of this event not only for the local region and state of Indiana, but the United States as well. The capabilities and unit operations possible within the BIC provides a tremendous platform to accelerate innovation in all aspects of energy storage. Scientists, with new materials to improve Lithium-Ion batteries, can efficiently fabricate electrodes and cells to evaluate the materials’ performance based on industry’s standard tests.
About the Battery Innovation Center: The BIC is a unique public-private partnership and not-for-profit organization that incorporates leadership from world-class universities, commercial enterprises, and government organizations to focus on the rapid development, testing and commercialization of safe, reliable and lighter weight energy storage systems for commercial and defense organizations. Located adjacent to Naval Surface Warfare Center (NSWC) Crane, the BIC provides both a virtual collaborative network of capabilities needed for development of next generation energy storage solutions as well as a new, state-of-the-art, $15.6 million energy research lab. Additional information is available at www.BICIndiana.com.
MEGTEC Systems, Inc. Acquires TurboSonic Technologies, Inc.
De Pere, WI. – February 1 -- MEGTEC Systems, Inc. (MEGTEC) is pleased to announce the acquisition of TurboSonic Technologies, Inc. (OTCQB - TSTA) (TurboSonic), effective immediately. The acquisition will include all of TurboSonic’s current products: wet electrostatic precipitator (WESP) systems, semi-dry and wet scrubbers, Catalytic Gas Treatment (CGT)™ systems, evaporative gas cooling systems, DeNOx systems and related parts and services. TurboSonic will join the MEGTEC family as MEGTEC TurboSonic Technologies, Inc., and operate as a wholly-owned subsidiary of MEGTEC Systems, Inc., and as a separate business unit within MEGTEC’s Environment, Climate and Energy (ECE) Group. The TurboSonic acquisition adds complementary product offerings to MEGTEC’s environmental portfolio and process expertise in key industries.
Commenting on the transaction, Mohit Uberoi, President and CEO of MEGTEC Systems, said, “The acquisition adds substantially to MEGTEC’s ECE business by bringing the highly regarded TurboSonic name and line of equipment under the MEGTEC umbrella. The new technologies broaden MEGTEC’s environmental solution competencies from abatement and energy recovery, to include particulate and acid gas control and provide an opportunity for MEGTEC to supply its customers with packaged solutions including both particulate and volatile organic compound (VOC) control.”
This transaction brings together two market-leading companies serving common end markets and will offer a broader range of products and services to its expanded customer base.
Edward Spink, CEO of TurboSonic, stated, “The acquisition will provide greater market exposure for TurboSonic’s technologies and leverage MEGTEC’s capabilities to offer complete solutions to customers worldwide.”
TurboSonic (www.turbosonic.com) designs and supplies air pollution control and liquid atomization technologies to industrial customers worldwide with operations in Waterloo, Ontario, Canada and Milan, Italy. TurboSonic's innovative product offering, developed through extensive industry experience, helps companies in the Cement & Mineral Processing, Ethanol & Biofuels, Metals & Mining, Petrochemicals, Power Generation, Pulp & Paper, Waste Incineration, and Wood Products industries outperform regulatory requirements, improve performance and energy efficiency, reduce operating costs and recover valuable by-products.
News, November 1, 2012. The Wisconsin Sustainable Business Council has awarded MEGTEC Systems, Inc. the Green Professional designation under the Green Masters Program, sponsored by the Wisconsin Sustainable Business Council., recognizing MEGTEC's focus on integrating principles of sustainability into their operations. The categories are: groups are: Energy, Climate, Water, Waste Management, Transporation, Supply Chain, Workforce, Governance, and Community and Education Outreach.
News Release, April 5, 2012
MEGTEC Innovation Cuts Flexible Packaging Manufacturer’s Energy Bills by $10,000 a Month
YAKIMA, Wash., April 5, 2012
Saving money on its energy bills turned out to be a lot of hot air for flexible packaging innovator Shields Bag & Printing.
As a custom blown film extruder, Shields Bag extrudes, prints and converts film for flexible
packaging products used in a wide range of industries. The company produces more than 100
lines of products that are shipped to clients all over the world, from produce bags to high graphic
The company traces its roots back to 1935, when Frank Shields opened a print shop in Yakima.
He and his sons built a successful commercial print shop, and in the mid-1950s branched out
into flexible packaging.
In 2011, Shields brought in their local utility provider for an energy audit that was part of a
greater review of the company’s operations. In their final report back to the company, the utility
noted the company was releasing heated air from its oxidizer units - heat that represented lost
energy dollars essentially being vented into the atmosphere. The oxidizers treat the exhaust
from the flexographic printing presses, using heated air to break down VOC (volatile organic
compounds) into carbon dioxide and water.
When the utility company delivered its final report to Shields Bag, three options were suggested for the company to improve its efficiency and reduce its energy waste from the oxidizers:
- Install a system that would capture the waste heat for other uses
- Install a new, more efficient oxidizer unit
- Replace the oxidizer with a biological system
A new system, whether it was a more efficient oxidizer or a biological system, was not seen as an effective solution for Shields Bag because of the capital costs. However, with the natural gas utility and Washington State University offering financial incentives for a reduction in gas usage, the company began looking for a solution that would capture the waste heat from the oxidizers and re-use it for other purposes.
"When we started looking at our energy consumption, our natural gas usage was way up there," Derek LaFramboise, environmental affairs manager for Shields Bag & Printing, said. "It prompted us to explore options to reduce the volume, and heat recovery was the option that lead us to the oxidizer modification."
MEGTEC proposed installing a heat coil system filled with a water-glycol mix in the stacks of the oxidizer exhaust that would capture the waste heat and make it available for transfer to other applications, such as pre-heating the air inlets for the oxidizers themselves. By pre-heating the air using recovered heat, less gas would be needed to heat the oxidizers to their optimal temperatures.
But MEGTEC's solution did not stop there. The engineers also proposed using the coil system to transfer some of the heat from the oxidizer exhaust to pre-heat the dryer oven intakes on the production side as well. Again, by using the heat from the oxidizer exhaust to warm the air entering the oven intakes, less energy was required to achieve the optimal temperature for the operation of the dryer ovens.
Shields Bag opted for MEGTEC's proposed solution, and its staff performed much of the installation in a two-phase approach that minimized production downtime. Engineers for MEGTEC worked on-site during the installation, providing assistance at critical times and with the start-up of the new heat recovery system.
Shields Bag experienced immediate returns on two fronts once the heat recovery system was active.
The company experienced a reduction in its natural gas consumption by nearly 10,000 therms a month without any loss in production levels. The estimated cost of a therm of natural gas for an industrial user is $1 per therm, resulting in an estimated savings for Shields Bag of roughly $10,000 per month in energy costs. Not only is a savings in fuel usage recognized, this also provides a substantial drop in carbon emissions and products of combustion.
Additionally, the company has reported lower maintenance costs associated with heat controls for the oxidizer and the drying ovens. With the intake air pre- heated by the recovery system, less energy is needed to heat it to optimal temperatures and operators are making fewer adjustments to the control settings. Additionally, the warmers in the intake vents don't need to operate as long. Supervisors on the line report the ovens better maintain consistent temperature and are more reliable since the installation was completed.
"It's a lot like when you have your home furnace at 70 degrees. When it's warming the air in the house, it clicks on and off just enough to keep the temperature constant," LaFramboise said. "It's when you open the doors and let in the cold outside air that the furnace has to work harder."
For Shields Bag, saving money on its energy use is more than just a lot of hot air - saving money is a lot of hot air vented in the right direction.