Dürr forms supplier of industrial environmental technologies
June 6, 2018Dürr is forming a leading supplier of environmental technology systems for industrial exhaust-air purification, following a corporate acquisition in the United States.
The Group is acquiring the industrial environmental technology business of Babcock & Wilcox Enterprises, Inc. (B&W). “Through this acquisition, we are establishing a leading company with sales of around € 400 million and the broadest technology and service range in the market. The global setup of the new unit provides an excellent basis for growth in the coming years”, says Dr. Jochen Weyrauch, responsible for paint shop and environmental technology business as well as M&A on the Dürr AG Board of Management.
The purchase agreement, which was signed today, comprises the acquisition of the three B&W subsidiaries, Babcock & Wilcox MEGTEC LLC, Babcock & Wilcox MEGTEC Holdings Inc. and Babcock & Wilcox Universal Inc. The purchase price will be calculated based on the enterprise value of the three companies, which amounts to around € 110 million. Closing is expected in the third quarter of 2018. It is subject to the satisfaction of usual antitrust closing conditions and regulatory approvals.
Business in exhaust-air purification technology for industrial processes has good growth prospects. Demand in emerging markets like China is growing, as increasingly strict emission levels are being introduced to protect the environment. In 2017, as much as 53 % of Dürr’s incoming orders in environmental technology were generated in the emerging markets, with China accounting for 34 %. In the established markets, in particular, service business is becoming increasingly important.
B&W’s industrial environmental technology business consists of the MEGTEC and Universal segments, headquartered in De Pere and Stoughton in the US state of Wisconsin. Dürr expects the two segments, which have a workforce of almost 900 employees, to achieve combined sales of around € 200 million in 2018. MEGTEC, the larger segment, offers mainly exhaust-air purification systems e.g. for volatile organic compounds (VOC), particles and other airborne emissions from industrial processes. Its technology portfolio includes oxidation systems, electrostatic filters and systems for solvent recovery and distillation. MEGTEC also offers industrial dryers and coating systems for lithium-ion-battery electrodes. Universal is a leading supplier of acoustic solutions, specializing in sound insulation systems and air filters, e.g. for gas turbines.
