Energy engineering and construction services provider, The Babcock & Wilcox Company (BWC) announced that its affiliate Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) has completed the $155 million acquisition of the industrial products and services company, MEGTEC.
MEGTEC will now function as a subsidiary of B&W PGG and have the trade name Babcock & Wilcox MEGTEC. The acquired entity will, however, remain headquartered in De Pere, WI and continue to be run by the same management.
Management of the Babcock & Wilcox affiliate stated that the technological development and innovation at both the companies should facilitate further growth and diversification opportunities across the globe.
Last week, Babcock & Wilcox Nuclear Energy, Inc., another affiliate of Babcock & Wilcox, received a multi-year fleet service contract from a unit of electric utility Dominion Resources Inc. (D). Per the contract, the affiliate will provide services for Dominion Generation’s three nuclear stations located in North Anna in Mineral, VA Surry in Surry, VA and Millstone in Waterford, CT.
Headquartered in Charlotte, NC, Babcock & Wilcox is engaged in providing clean energy technology and services for the nuclear, fossil and renewable power markets worldwide. The company was spun off from the energy-focused engineering and construction firm McDermott International (MDR) in 2010 and currently operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.
Babcock & Wilcox currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players from the same industry such as Blount International Inc. (BLT). The stock currently holds a Zacks Rank #2 (Buy).
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