Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its Global Power Group has signed an asset purchase agreement with Siemens Energy, Inc. to acquire the Siemens Environmental Systems and Services business that supplies and services clean air technologies for use in power plants and industrial facilities. Closing of the transaction is subject to customary closing conditions, and is expected in the second quarter of 2014.
The Siemens Environmental Systems and Services purchase includes assets of the former Wheelabrator Air Pollution Control Companylocated in Pittsburgh, Pennsylvania and the Advanced Burner Technology Company located in Branchburg, New Jersey.
Combined, these businesses design, engineer, retrofit and service a broad range of clean air technologies for power and industrial plants including: wet and dry flue gas desulfurization (FGD) and particulate control (fabric filters and electrostatic precipitators), acid gas control, mercury control, NOx reduction and combustion optimization systems.
“This is a strategic acquisition which expands our capability to offer clean air products and services to our clients in both the power and industrial sectors,” said Gary Nedelka, Chief Executive Officer of Foster Wheeler’s Global Power Group. “It complements our existing portfolio of clean-air products and allows us to provide our clients with a full array of solutions to meet both tightening environmental regulations and the growing demand for energy on a global basis.”
As announced, on February 13, 2014 Foster Wheeler entered into a definitive agreement with AMEC plc (“AMEC”) concerning a possible business combination of Foster Wheeler and AMEC. Foster Wheeler has informed AMEC of the Siemens transaction. Foster Wheeler does not expect the Siemens transaction to affect the timing of completion of the business combination of Foster Wheeler and AMEC.
Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, minerals and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Groupis a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug,Switzerland, and its operational headquarters office is in Reading, United Kingdom.