Westinghouse purchased for $4.6 billion

Cranberry-based Westinghouse Electric Co. announced Thursday morning that it has been acquired by Brookfield Business Partners L.P. for $4.6 billion.

The purchase includes all of the global business of Westinghouse Electric Co. LLC and its affiliated debtors and debtors-in-possession as well as the assumption of certain pension, environmental and other operating obligations.

An affiliate of Canada’s Brookfield Asset Management Inc (BAMa.TO) (BAM.N) plans to acquire Westinghouse Electric Co LLC, the bankrupt nuclear services company owned by Toshiba Corp (6502.T), for $4.6 billion.

Brookfield Business Partners LP (BBU.N) (BBU_u.TO), whose New York-listed shares rose 3.3 percent, said in a statement on Thursday that it and institutional partners would use $1 billion of equity and $3 billion of long-term debt financing to buy the Pittsburgh-based business.

The deal is expected to close in the third quarter.

Westinghouse has said it is aiming to exit bankruptcy as soon as March, which would allow Toshiba to book tax benefits in the current fiscal year.

”Brookfield’s acquisition of Westinghouse reaffirms our position as the leader of the global nuclear industry,” said Westinghouse Chief Executive Officer José Emeterio Gutiérrez.

Toshiba did not immediately respond to requests for comment.

Brookfield Business Partners was an investor in the bankrupt power producer that emerged from Chapter 11 and became Vistra Energy Corp (VST.N), and it remains a major shareholder in the Texas company.

Westinghouse is one the world’s leading suppliers of nuclear fuel, and it provides some form of service to 80 percent of the world’s 450 commercial reactors, according to court records.

Those two business lines generated combined cash flow of $403 million on revenue of about $3.1 billion in Westinghouse’s 2015 financial year, according to court records.

“Throughout the process, Westinghouse will continue to operate in the ordinary course of business under its existing senior management,” the news release said.

New nuclear power construction globally has dropped to the lowest level in a decade following renewed safety concerns after the Fukushima disaster in Japan in 2011.

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One comment

  1. its no wonder they went bankrupt. the idiot CEO was told to generate income. So he cuts back on spending. no income generated. he got fired! most of the worthless workforce they have shows up at 9am parking lot is empty by 330 pm. no one really does anything there other than collect a paycheck. Toshiba got tired of paying people not performing so made them fire bankruptcy! its the western PA union mentality. I bet they all get canned and they hire new. or move the headquarters out of PA and sell off the buildings.

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