GE and Hitachi, Ltd. are pleased to announce that they have entered into a definitive agreement for the sale of GE Hitachi Nuclear Energy Canada Inc. (GEH-C) to BWXT Canada Ltd. (BWXT Canada) a subsidiary of BWX Technologies, Inc. (NYSE: BWXT). The transaction is subject to customary conditions, including regulatory approvals, and is expected to close by the end of 2016.
"GEH-C's people, expertise, products and service capabilities make it the right fit for BWXT Canada and its goals of long-term growth in serving the nuclear industry," said Elyse Allan, president and CEO, GE Canada and Chairman of the Board of GEH-C. "Like GEH-C, BWXT has a long history serving Canada's nuclear industry and they share the same values of quality, innovation and safety."
"BWXT Canada has a rich Canadian history and an impressive track record of continued investment in technology, process, and research and development," said GEH-C president and CEO Mark Ward. "This transaction is good news for our business as it brings together the extensive knowledge and expertise of two firms committed to delivering high quality products and services to the nuclear industry in Canada and abroad."
GEH-C has more than 60 years of extensive experience and innovation in the supply of nuclear fuel and fuel channel components, services, equipment and parts for the CANDU® nuclear power industry. This includes designing and supplying highly reliable nuclear equipment to fuel, inspect, and refurbish reactors. GEH-C employs approximately 350 skilled employees at three locations in Ontario: Peterborough, Toronto and Arnprior.
"GEH-C has been an important part of GE's history in Canada and has made significant contributions to Canada's nuclear industry over the last 60 years," added Allan. "We are confident that BWXT Canada is the right business to take GEH-C forward for our customers and employees."
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements, which reflect GE Hitachi Nuclear Energy Inc.'s, GE's and Hitachi, Ltd.'s current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, uncertainties associated with approval of applicable governmental authorities, necessary regulatory approvals and other customary conditions. Except as required by applicable securities laws, GE Hitachi Nuclear Energy Canada Inc., GE and Hitachi, Ltd. do not assume and expressly renounces any obligation to update any forward-looking information. Additionally, GE Hitachi Nuclear Energy Canada Inc., GE and Hitachi, Ltd. undertake no obligation to comment on expectations of, or statements made by, third parties in respect of the transaction.
Date: Aug 18, 2016