BWX Technologies (BWXT), an American nuclear components and fuel manufacturing company, has agreed to acquire Canada-based Kinectrics in a deal valued at about $525m.
The consideration includes Kinectrics’ net pension, debt liabilities, and transaction expenses.
Kinectrics is a lifecycle management services provider for the nuclear power and the transmission and distribution sectors. The firm is also engaged in the production and supply of isotopes for the radiopharmaceutical industry.
Through the acquisition, BWXT aims to bolster its commercial operations segment, expanding its portfolio of products and services in the global nuclear power and radiopharmaceutical industries.
BWXT commercial operations president John MacQuarrie said: “This acquisition expands our ability to deliver end-to-end solutions to existing and new customers more efficiently.
“The investment uniquely brings together two industry leaders with complementary expertise and service offerings in the growing commercial nuclear power and nuclear medicine markets. With the talented team joining from Kinectrics, we are strengthening our ability to meet our customers’ evolving needs.”
In the commercial nuclear power market, Kinectrics offers comprehensive lifecycle support services, from design and engineering to operational support and maintenance.
This addition is set to enhance BWXT’s presence in the CANDU reactor market, increase its footprint in the US, as well as provide access to select international markets.
Besides, the Canadian company brings advanced isotope irradiation and production technologies for nuclear medicine. Since 2022, it is said to have been a key player in the supply chain for Lutetium-177, a critical isotope in cancer treatment.
The company’s nuclear medicine operations also include Isogen, a joint venture with Framatome focused on isotope production.
Kinectrics, with a workforce of over 1,300 engineers and technical experts across 20 global sites, is anticipated to generate revenue of around $300m in 2024.
Following the completion of the acquisition, Kinectrics will operate as a subsidiary of BWXT, with its financial results integrated into BWXT’s commercial operations segment.
The deal is also expected to nearly double the workforce of BWXT’s commercial operations and broaden its capabilities in lifecycle management, specialised plant services, and engineering.
It is anticipated to be completed in mid-2025 and is projected to modestly enhance BWXT’s earnings, excluding one-time costs and purchase accounting adjustments.
Earlier this year, BWXT announced a $60m expansion at its Cambridge, Ontario facility. The expansion, which increases the plant’s footprint by 25%, is expected to create over 200 long-term jobs for skilled workers, engineers, and support staff.
