BWXT Enters Agreement to Acquire Kinectrics, a Leading Service Provider to the Global Nuclear Market
- Investment creates a comprehensive portfolio of end-to-end lifecycle services for customers in the small modular reactor and traditional large-scale nuclear reactor markets
- Expands the company's presence in fast-growing areas, including clean energy, energy security and the rising demand for nuclear technologies
- BWXT to hold a conference call on January 7, 2025, at 8:30 a.m. E.T.
BWX Technologies, Inc. (NYSE:BWXT) today announced that it has entered into an agreement to acquire Kinectrics, Inc., for approximately US$525 million, including assumption of Kinectrics' net pension and debt liabilities, and estimated transaction expenses. Kinectrics is a leader in providing lifecycle management services for the global nuclear power and transmission and distribution markets, and in the production and supply of isotopes for the radiopharmaceutical industry.
The acquisition is highly complementary to BWXT's Commercial Operations segment and will enable an expanded portfolio of products and services for current and new customers in the global nuclear power and radiopharmaceutical industries. In the commercial nuclear power market, Kinectrics brings a broad suite of lifecycle support services that will further strengthen BWXT's position in the CANDU reactor market, while increasing its exposure to the U.S. market and select international markets. In nuclear medicine, Kinectrics offers additional isotope irradiation and production technologies, and has played a critical role in the existing Lutetium-177 supply chain since 2022. Kinectrics employs over 1,300 engineers and technical experts located across its 20 sites worldwide.
"This acquisition expands our ability to deliver end-to-end solutions to existing and new customers more efficiently," said John MacQuarrie, president of BWXT Commercial Operations. "The investment uniquely brings together two industry leaders with complementary expertise and service offerings in the growing commercial nuclear power and nuclear medicine markets. With the talented team joining from Kinectrics, we are strengthening our ability to meet our customers' evolving needs. This includes supporting utilities as they explore ways to expand nuclear power generation through life extensions and new builds, partnering with small modular reactor designers seeking comprehensive regulatory, engineering, manufacturing, and aftermarket solutions, and collaborating with healthcare partners who require reliable isotopes for under-supplied medical isotopes revolutionizing oncology."
Kinectrics, headquartered in Toronto, Canada, is expected to generate revenue of approximately US$300 million in 2024 in two core business areas: commercial power services and nuclear medicine.
- Commercial power services provides support for all stages of the nuclear power plant lifecycle and other areas of the related grid ecosystem, including initial design and engineering, operational support and maintenance services, as well as transmission and distribution reliability services.
- Nuclear medicine includes isotope production services for the radiopharmaceutical industry, including Isogen, a joint venture between Kinectrics and Framatome.
Upon close, the acquisition will nearly double the workforce of BWXT's Commercial Operations and expand its capabilities, including lifecycle management, specialized plant services and engineering, to support the North American and international nuclear markets.
The acquisition is targeted to close in the middle of 2025 and is expected to be modestly accretive to BWXT's earnings, excluding purchase accounting and other one-time costs. Following the close, Kinectrics will operate as a BWXT subsidiary, and its financial results will be reported within BWXT's Commercial Operations segment.
David Harris, President & CEO of Kinectrics, will continue to lead the organization and will report to John MacQuarrie, President of BWXT Commercial Operations.
This investment is one of BWXT's strategic steps in response to current and anticipated demand for nuclear projects and services worldwide. Earlier this year, BWXT announced a US$60 million expansion at its facility in Cambridge, Ontario, to increase the plant's footprint by 25 percent and create more than 200 long-term jobs for skilled workers, engineers and support staff in the area.
Conference Call
BWXT will host a conference call on January 7, 2025, at 8:30 a.m. E.T. to discuss the acquisition.
- Listen-only participants are encouraged to participate and view the supporting presentation via the internet at www.bwxt.com/investors.
- The dial-in numbers for participants are (U.S.) 800-715-9871 and (International) 1-646-307-1963; conference ID: 5433335.
- A replay of the call will remain available on the BWXT website for a limited time.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to management's plans and expectations for the acquisition of Kinectrics, our ability to realize the anticipated benefits of the acquisition, future revenues and demand for Kinectrics' business, and Kinectrics' continuing operations. These forward-looking statements are based on management's current expectations and involve a number of risks and uncertainties, including, among other things, our ability to obtain any necessary regulatory and other approvals required for the acquisition, and competition in the market for the products and services sold by Kinectrics. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT's annual report on Form 10-K for the year ended December 31, 2023, and subsequent reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE:BWXT), we are People Strong, Innovation Driven. A U.S.-based company, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With approximately 7,800 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.
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