EnergySolutions is looking to sell of its European business unit, which includes the company’s contract to manage the U.K.’s Magnox nuclear power stations. In a release issued yesterday, new CEO and President David Lockwood said that EnergySolutions had been approached by “third parties” over the potential purchase of its ESEU business, and that the company is considering “a number of proposals and transaction structures.” The potential sale options will be considered “quickly and efficiently,” according to the release. “We are evaluating these alternatives in the best interests of our shareholders, customers and employees,” Lockwood said.
The potential sale comes approximately one month after Lockwood took over as head of EnergySolutions after a management shuffle that saw the departure of previous CEO Val Christensen and Chief Financial Officer William Benz. Lockwood, who previously served as a partner at the investment firm ValueAct Capital, a major shareholder of EnergySolutions, has been seen by financial analysts as a strong cost-cutting advocate. EnergySolutions’ efforts to sell of its European business unit also comes as the U.K. Nuclear Decommissioning Authority is moving forward with a planned competition for the new contract to manage and decommission the Magnox sites in a process set to be completed by the end of 2013, when the new contract winner is currently scheduled to be announced. According to EnergySolutions, the NDA has raised “no objections” to the potential sale.
