Centrus Energy acquired one of its manufacturing suppliers, Westernman Holdings, in a transaction for nearly $116 million, Centrus said Monday.
The near-$116 million acquisition was made up of a combination of $95 million cash that was on hand and $21 million of equity, Centrus said in its press release. Additionally, Westernman and all its business lines were acquired, and the company will become a subsidiary of Centrus, but Westerman will remain under the same company name.
The company said the acquisition is expected to be “accretive to adjusted earnings per share in the first year following closing.”
Bremen, Ohio-based Westerman manufactures centrifuge casings and several other centrifuge parts for Centrus. The uranium broker said as a result of the transaction, it will also expand Westernman’s capabilities. Centrus hopes this transaction will help lower its project costs and create more efficiencies with an integrated supply chain.
“Westerman is a highly regarded, best-in-class supplier and fabricator for Centrus, the broader nuclear industry, and a number of other sectors,” Amir Vexler, Centrus president and CEO, said in the release. “Bringing Westerman in-house demonstrates our commitment to securing our supply chain to support our build-out while adding to our capabilities and expanding our customer base.”
This transaction comes as Centrus is actively expanding both its manufacturing capabilities in Oak Ridge, Tenn. and uranium enrichment capacities in Piketon, Ohio near the Department of Energy’s Portsmouth Site.
