BWX Technologies said Thursday that its subsidiary BWXT Canada Ltd. had entered into a share purchase agreement to acquire all of the shares of the GE Hitachi Nuclear Energy Canada Inc. joint adventure.
The terms of the transaction are being kept under wraps. The transaction, said the Babcock and Wilcox spin-off, is expected to be completed during the fourth quarter of this year, as long as the deal is approved by regulatory reviews in Canada.
The acquisition “roughly doubles” the BWXT footprint in Canada, the company said. It also signals a long-term commitment to the CANDU nuclear power segment, which the company termed an “attractive” investment with growth opportunities.
The transaction is expected to be accretive within the first year and to favorably impact margins in the Nuclear Energy Segment.
GEH-Canada is a supplier of fuel, fuel handling systems, delivery systems and replacement components for CANDU reactors. The company's payroll numbers roughly 350 workers, who operate out of three sites in the Province of Ontario – Peterborough, Toronto and Arnprior.
GEH-C is to maintain its Peterborough headquarters with activities operated as part of BWXT Canada's overall commercial nuclear business. The expanded company will be lead by John MacQuarrie, currently president of BWXT Canada with GEH-C President Mark Ward expected to stay on in an executive capacity.
While GEH-C has a focus on fuel supply and related components, BWXT Canada has been supplier to over 300 CANDU and Pressurized Water Reactor steam generators worldwide. Combined, the companies have over 100 years of experience in the nuclear power industry.