Willbros Group Inc. (WG) said Oct. 9 it has closed another divestiture that will bring it closer to its restructuring goal.
The Houston company has sold Bemis LLC to NAPEC Inc.’s U.S. subsidiary, Riggs Distler & Co. Inc., for US$19.2 million. The strategic acquisition will enhance the Canadian company's presence in the Northeast region of the U.S.
Bemis has provided major utility companies in the U.S. Northeast with construction and maintenance services for electricity transmission and distribution networks since it was founded in 1981. The company is based in Jacksonville, Vt., and currently has more than 40 employees.
During the last four years Bemis has generated average annual EBITDA of more than US$4 million. The company’s management team, led by Rodney Bemis, will remain in place following the acquisition.
NAPEC financed the deal through a combination of existing and new credit facilities. Houlihan Lokey was financial adviser to Willbros and Conner & Winters LLP was its legal adviser.
On Oct. 5, Willbros said it entered an agreement to sell its professional services segment to TRC Cos. Inc. (TRR) for $130 million in cash. The sale is expected to close by the end of November.
The two divestitures will reduce the company's term loan debt to less than $100 million and provide $43 million to maintain its liquidity and working capital, said John T. McNabb II, Willbros chairman and CEO.
"In the past 13 months we have taken difficult but necessary management actions with the goal of restructuring Willbros operations, strengthening the balance sheet and positioning the company to be a preferred provider of energy infrastructure construction and maintenance services," McNabb said in a statement.
Greenhill & Co. LLC was financial adviser to Willbros and Conner & Winters LLP was its legal adviser for the professional services divestiture.
Willbros received notification in August from the New York Stock Exchange warning it of potential de-listing. At close on Oct. 8 the company's shares were trading at $2.57.
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