McDermott to Acquire Marine Mechanical Corporation
HOUSTON -- McDermott International, Inc. (NYSE:MDR) ("McDermott" or the "Company") announced today that its Government Operations subsidiary, BWX Technologies, Inc. ("BWXT"), has entered into a definitive agreement to acquire Marine Mechanical Corporation ("MMC") for approximately $75 million.
Headquartered in Euclid, Ohio outside of Cleveland, MMC designs, manufactures and supplies electro-mechanical equipment used by the United States Navy. MMC, employing approximately 250 people, generated revenues in 2006 of approximately $50 million and ended the year with backlog of approximately $165 million. McDermott intends to operate MMC as a unit of BWXT's Nuclear Operations Division.
"Marine Mechanical is a well-suited addition to our Nuclear Operations Division," indicated John A. Fees, Chief Executive Officer of McDermott's subsidiary, The Babcock & Wilcox Companies. "The U.S. Navy has safely traveled millions of miles due in large part to the components provided by BWXT and MMC. Combined, we expect this tradition of excellence to continue."
BWXT's acquisition of MMC is contingent upon obtaining clearance under the Hart-Scott-Rodino Antitrust Act and final due diligence. The transaction is expected to close prior to April 30, 2007.
McDermott International, Inc. is a leading worldwide energy services company. The Company's subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy.
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this presentation that are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this presentation include statements regarding the timing and benefits of this acquisition and backlog of MMC, to the extent backlog may be viewed as an indicator of future revenues. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, difficulties in integrating MMC with BWXT and delays or other difficulties in satisfying closing conditions, including the receipt of regulatory approval and the results of final due diligence.
Contacts
McDermott International, Inc.
Jay Roueche or Robby Bellamy, 281-870-5011
www.mcdermott.com
Headquartered in Euclid, Ohio outside of Cleveland, MMC designs, manufactures and supplies electro-mechanical equipment used by the United States Navy. MMC, employing approximately 250 people, generated revenues in 2006 of approximately $50 million and ended the year with backlog of approximately $165 million. McDermott intends to operate MMC as a unit of BWXT's Nuclear Operations Division.
"Marine Mechanical is a well-suited addition to our Nuclear Operations Division," indicated John A. Fees, Chief Executive Officer of McDermott's subsidiary, The Babcock & Wilcox Companies. "The U.S. Navy has safely traveled millions of miles due in large part to the components provided by BWXT and MMC. Combined, we expect this tradition of excellence to continue."
BWXT's acquisition of MMC is contingent upon obtaining clearance under the Hart-Scott-Rodino Antitrust Act and final due diligence. The transaction is expected to close prior to April 30, 2007.
McDermott International, Inc. is a leading worldwide energy services company. The Company's subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the power and energy industries, including the U.S. Department of Energy.
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this presentation that are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this presentation include statements regarding the timing and benefits of this acquisition and backlog of MMC, to the extent backlog may be viewed as an indicator of future revenues. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, difficulties in integrating MMC with BWXT and delays or other difficulties in satisfying closing conditions, including the receipt of regulatory approval and the results of final due diligence.
Contacts
McDermott International, Inc.
Jay Roueche or Robby Bellamy, 281-870-5011
www.mcdermott.com
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