Amec Foster Wheeler has revealed that it has signed an agreement to sell its core boiler business to Sumitomo Heavy Industries Ltd as part of its non-core disposal programme.
Amec Foster Wheeler a UK-headed global company that offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology has announced that it has signed an agreement to sell its core boiler business to Japan-based Sumitomo Heavy Industries, Ltd for GBP 137 million (≈ EUR 161.8 million).
The core boiler business designs manufacture and installs circulating fluidised bed (CFB) boilers which burn a variety of fuels in an efficient and environmentally friendly manner and are employed in power generation plants.
According to a statement, the deal is part of the company’s non-core asset disposal programme and the proceeds for this business are consistent with the GBP 180 million (≈ EUR 212.6 million) book value for the whole of its Global Power Group (GPG) as at June 2016.
The balance of GPG’s steam generator businesses, the heat recovery steam generator, and industrial boilers businesses are expected to be sold during 2017, while the North American aftermarket services business is being retained, and since the beginning of 2017 has been operating as part of Power & Process.
The sale is conditional on customary regulatory approvals in certain jurisdictions and is expected to be completed during the second quarter.