Hitachi Zosen Inova acquires Babcock & Wilcox Renewable Service for $87mn

Switzerland-based Hitachi Zosen Inova (HZI), a unit of Japan’s Hitachi Zosen Corporation that designs, constructs, operates, and maintains waste-to-energy and renewable gas plants, has acquired Denmark’s Babcock & Wilcox Renewable Service (BWRS) for $87mn, Babcock & Wilcox announced on July 1.

BWRS, a subsidiary of New York-listed Babcock & Wilcox, employs more than 160 people and provides aftermarket parts and services for waste-to-energy plants in northern Europe and the UK. The company was transferred to HZI upon the closing of the deal on June 28.

“This transaction aligns with our previously announced intention to strategically sell certain non-core businesses and assets. The proceeds will be used to reduce our debt, increase our liquidity, and support working capital,” said Kenneth Young, B&W CEO.

In a separate statement, Hitachi Zosen Corporation said that HZI aims to expand its full plant lifecycle business for both its own plants and those of other companies, and this acquisition aligns with that strategy.

“There are more than 140 waste-to-energy plants operating in Nordic countries, many of which are ageing, leading to an expected increase in demand for aftermarket services,” Hitachi Zosen Corporation stated. “The location of BWRS in the Nordics provides a complementary relationship with its new parent company from a geographical point of view. We expect to strengthen our after-sales business throughout Europe.”