RadWaste Vol. 8, No. 44
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RadWaste Monitor
Article 10 of 11
November 20, 2015

EnergySolutions to Purchase Competitor

By Chris Schneidmiller

Karl Herchenroeder and Brian Bradley
RW Monitor
11/20/2015

EnergySolutions announced Thursday that it had reached a tentative agreement to purchase competitor Waste Control Specialists for $270 million. The announcement came just days after the Utah-based nuclear services giant agreed to sell off its Hanford Site tank farm operation and other assets to WS Atkins for $318 million.

Representatives for EnergySolutions and Waste Control Specialists said WCS will continue to pursue a license to operate a commercial interim storage facility for nuclear waste at its radioactive waste disposal site in Andrews, Texas. The Obama administration ceased funding for the waste repository planned at Nevada’s Yucca Mountain in 2011, opting instead for “consent-based” options for pilot interim storage. Both Texas and New Mexico showed interest in hosting an interim site, and WCS said earlier this year it intends to build an interim storage facility by 2020.

The potential agreement would end litigation between EnergySolutions and WCS. Earlier this year, EnergySolutions accused WCS of engaging in “monopolistic behavior” following a dispute over a disposal contract. In 2014, EnergySolutions purchased Studsvik Inc.’s Tennessee processing facilities and exclusive rights to its THOR waste treatment technology in North America and China. WCS attempted to cease its disposal contract with Studsvik, a move EnergySolutions called “anti-competitive,” citing WCS’ control of the Class B and C radioactive waste disposal market.

WCS spokesman Chuck McDonald said the company initiated mediation discussions with EnergySolutions two months ago. The talks resulted in EnergySolutions’ offer to acquire WCS, and after negotiations, EnergySolutions came to an agreement with Valhi, WCS’ parent company. According to McDonald, WCS will maintain its management and operating employees. WSC, which is a Texas-based waste treatment, storage, and disposal company, employs more than 200 workers, while EnergySolutions, an international nuclear recycling, processing, and disposal company, has about 5,000 employees.

“WCS presents an opportunity for EnergySolutions to complement its business capabilities given our low-level radioactive B&C licenses and the fact that the two businesses are complementary from a geographic standpoint,” McDonald said. “WCS would also benefit from the expanded transportation offerings that EnergySolutions provides.”

EnergySolutions spokesman Mark Walker said the purpose of the transaction “is to provide customers more efficient, reliable, comprehensive, and convenient service.”

On top of the $270 million cash payment, EnergySolutions will assume $77 million in WCS debt and pay the company another $20 million in stock. The sale is contingent on a federal anti-trust review, which McDonald said could take six months or longer. Formally, the sale is between Valhi Inc. and Rockwell Holdco Inc., the parent company of EnergySolutions.

"The sale of Waste Control Specialists to Rockwell will expand the range of services available to its customers, while providing Valhi the opportunity to deploy the cash proceeds from the sale to take advantage of growth opportunities in its remaining businesses,” Valhi Chairman and CEO Steven Watson said in a statement. “The continuing equity interest in Rockwell, the parent company of the combined businesses, will allow Valhi to participate in the benefits of the combination."

 

Atkins to Acquire EnergySolutions Division

United Kingdom-based project management specialist Atkins on Tuesday announced completion of an agreement to acquire EnergySolutions’ projects, products, and technology segment for $318 million. PP&T’s portfolio includes nuclear waste remediation projects, and Atkins said in a press release it sought out the deal, in part, because it accelerates its nuclear strategy and because EnergySolutions has a complementary customer base and capabilities. PP&T comprises 650 personnel who work in the decontamination and decommissioning of high-risk nuclear sites and in environmental remediation of nuclear waste storage sites, according to the release. Last year, the group reported $281.4 million in revenue from continuing operations and $30.7 million in adjusted operating profit.

“Our combined business is well positioned in all the major nuclear markets in North America, UK, Europe, Middle East and Asia Pacific,” Atkins CEO Uwe Krueger said in a statement. “In the U.S., which has the largest nuclear fleet, we are at the top table for decommissioning, site operations, major projects and consultancy.” The move complements Atkins’ 2014 acquisition of Nuclear Safety Associates, Krueger added.

The acquisition is expected to be completed in the first quarter of 2016, and is conditional upon customary regulatory approvals in North America, according to the release. The acquisition will be funded through money from Atkins and “available committed bank facilities,” the company said.

EnergySolutions’ logistics, processing, and disposal, and its reactor decommissioning businesses are not included in the deal. This EnergySolutions portfolio consists of the company’s reactor decommissioning business, including current projects at Zion, Ill., and LaCrosse, Wis., and its North American utility services business, including liquid waste processing, spent fuel pool services, and other commercial projects. PP&T covers ES’ North American government, Europe and Asia businesses.

Atkins also liked PP&T because of its strong presence in the Asia-Pacific, which has a “fast-growing new build and decommissioning market,” the release states, mentioning PP&T’s design and supply of several water treatment technologies to treat contaminated water at the damaged Fukushima Daiichi nuclear power plant in Japan.

“By using its portfolio of proprietary nuclear waste treatment technologies, PP&T is able to generate higher margins and support entry into new markets and geographies,” the release states. 

The acquisition will bring operating margins above Atkins’ 8 percent target, according to the release.

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NEW: Via public records request, I’ve been able to confirm reporting today that a warrant has been issued for DOE deputy asst. secretary of spent fuel and waste disposition Sam Brinton for another luggage theft, this time at Las Vegas’s Harry Reid airport. (cc: @EMPublications)

DOE spent fuel lead Brinton accused of second luggage theft.



by @BenjaminSWeiss, confirming today's reports with warrant from Las Vegas Metro PD.

Waste has been Emplaced! đźš®

We have finally begun emplacing defense-related transuranic (TRU) waste in Panel 8 of #WIPP.

Read more about the waste emplacement here: https://wipp.energy.gov/wipp_news_20221123-2.asp

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Weapons Complex Vol. 26 No. 44
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Weapons Complex Monitor
Article 14 of 15
November 20, 2015

EnergySolutions to Purchase Competitor

By Brian Bradley

Karl Herchenroeder and Brian Bradley
WC Monitor
11/20/2015

EnergySolutions announced Thursday that it had reached a tentative agreement to purchase competitor Waste Control Specialists for $270 million. The announcement came just days after the Utah-based nuclear services giant agreed to sell off its Hanford Site tank farm operation and other assets to WS Atkins for $318 million.

Representatives for EnergySolutions and Waste Control Specialists said WCS will continue to pursue a license to operate a commercial interim storage facility for nuclear waste at its radioactive waste disposal site in Andrews, Texas. The Obama administration ceased funding for the waste repository planned at Nevada’s Yucca Mountain in 2011, opting instead for “consent-based” options for pilot interim storage. Both Texas and New Mexico showed interest in hosting an interim site, and WCS said earlier this year it intends to build an interim storage facility by 2020.

The potential agreement would end litigation between EnergySolutions and WCS. Earlier this year, EnergySolutions accused WCS of engaging in “monopolistic behavior” following a dispute over a disposal contract. In 2014, EnergySolutions purchased Studsvik Inc.’s Tennessee processing facilities and exclusive rights to its THOR waste treatment technology in North America and China. WCS attempted to cease its disposal contract with Studsvik, a move EnergySolutions called “anti-competitive,” citing WCS’ control of the Class B and C radioactive waste disposal market.

WCS spokesman Chuck McDonald said the company initiated mediation discussions with EnergySolutions two months ago. The talks resulted in EnergySolutions’ offer to acquire WCS, and after negotiations, EnergySolutions came to an agreement with Valhi, WCS’ parent company. According to McDonald, WCS will maintain its management and operating employees. WSC employs more than 200 workers, while EnergySolutions has about 5,000 employees.

“WCS presents an opportunity for EnergySolutions to complement its business capabilities given our low-level radioactive B&C licenses and the fact that the two businesses are complementary from a geographic standpoint,” McDonald said. “WCS would also benefit from the expanded transportation offerings that EnergySolutions provides.”

EnergySolutions spokesman Mark Walker said the purpose of the transaction “is to provide customers more efficient, reliable, comprehensive, and convenient service.”

On top of the $270 million cash payment, EnergySolutions will assume $77 million in WCS debt and pay the company another $20 million in stock. The sale is contingent on a federal anti-trust review, which McDonald said could take six months or longer. Formally, the sale is between Valhi Inc. and Rockwell Holdco Inc., the parent company of EnergySolutions.

"The sale of Waste Control Specialists to Rockwell will expand the range of services available to its customers, while providing Valhi the opportunity to deploy the cash proceeds from the sale to take advantage of growth opportunities in its remaining businesses,” Valhi Chairman and CEO Steven Watson said in a statement. “The continuing equity interest in Rockwell, the parent company of the combined businesses, will allow Valhi to participate in the benefits of the combination."

Atkins to Acquire EnergySolutions Division

United Kingdom-based project management specialist Atkins on Tuesday announced completion of an agreement to acquire EnergySolutions’ projects, products, and technology segment for $318 million. PP&T’s portfolio includes nuclear waste remediation projects, and Atkins said in a press release it sought out the deal, in part, because it accelerates its nuclear strategy and because EnergySolutions has a complementary customer base and capabilities. PP&T comprises 650 personnel who work in the decontamination and decommissioning of high-risk nuclear sites and in environmental remediation of nuclear waste storage sites, according to the release. Last year, the group reported $281.4 million in revenue from continuing operations and $30.7 million in adjusted operating profit.

“Our combined business is well positioned in all the major nuclear markets in North America, UK, Europe, Middle East and Asia Pacific,” Atkins CEO Uwe Krueger said in a statement. “In the U.S., which has the largest nuclear fleet, we are at the top table for decommissioning, site operations, major projects and consultancy.” The move complements Atkins’ 2014 acquisition of Nuclear Safety Associates, Krueger added.

The acquisition is expected to be completed in the first quarter of 2016, and is conditional upon customary regulatory approvals in North America, according to the release. The acquisition will be funded through money from Atkins and “available committed bank facilities,” the company said.

EnergySolutions’ logistics, processing, and disposal, and its reactor decommissioning businesses are not included in the deal. This EnergySolutions portfolio consists of the company’s reactor decommissioning business, including current projects at Zion, Ill., and LaCrosse, Wis., and its North American utility services business, including liquid waste processing, spent fuel pool services, and other commercial projects. PP&T covers ES’ North American government, Europe and Asia businesses.

Atkins also liked PP&T because of its strong presence in the Asia-Pacific, which has a “fast-growing new build and decommissioning market,” the release states, mentioning PP&T’s design and supply of several water treatment technologies to treat contaminated water at the damaged Fukushima Daiichi nuclear power plant in Japan.

“By using its portfolio of proprietary nuclear waste treatment technologies, PP&T is able to generate higher margins and support entry into new markets and geographies,” the release states.

The acquisition will bring operating margins above Atkins’ 8 percent target, according to the release.

Comments are closed.

Partner Content
Social Feed

NEW: Via public records request, I’ve been able to confirm reporting today that a warrant has been issued for DOE deputy asst. secretary of spent fuel and waste disposition Sam Brinton for another luggage theft, this time at Las Vegas’s Harry Reid airport. (cc: @EMPublications)

DOE spent fuel lead Brinton accused of second luggage theft.



by @BenjaminSWeiss, confirming today's reports with warrant from Las Vegas Metro PD.

Waste has been Emplaced! đźš®

We have finally begun emplacing defense-related transuranic (TRU) waste in Panel 8 of #WIPP.

Read more about the waste emplacement here: https://wipp.energy.gov/wipp_news_20221123-2.asp

Load More