B&W Confirms Plans to Consider Separate Companies for Gov’t/Nuclear Ops, Power Units

Babcock & Wilcox confirmed yesterday that its Board of Directors is considering splitting its Government and Nuclear Operations business segment and its commercially focused Power Generation unit into two publicly traded companies, with B&W President and CEO Jim Ferland suggesting that the move could enhance the value of the company. B&W’s Government and Nuclear Operations unit includes its Technical Services Group and is headed up by Sandy Baker. “B&W’s businesses are stable and profitable,” Ferland said in a message to employees obtained by Weapons Complex Morning Briefing. “The Government & Nuclear Operations business is a recurring business with solid earnings and cash flow. The Power Generation business is projects-driven with a recurring aftermarket services business, and has higher growth potential, particularly in international markets. The Board is evaluating whether a separation could better leverage the strengths of these two successful businesses and enhance value for shareholders.”