Centrus acquires centrifuge-casing supplier Westerman for $116 million
Funded with about $95 million cash on hand and $21 million of equity, and expected to be accretive to adjusted earnings per share in the first year.
Key facts
- Westerman supplies centrifuge casings and other major centrifuge components to Centrus
- Founded in 1909; about 400 employees across four facilities in Ohio, Oklahoma and Wyoming
- Serves oil and gas and other non-nuclear industrial customers, broadening Centrus' revenue beyond nuclear
- Backs Centrus' previously announced multi-billion-dollar uranium enrichment capacity expansion
- CEO Jacob Garrett becomes president of Westerman and a vice president of Centrus
Centrus Energy acquired Westerman Holdings, LLC for approximately $116 million, the company said on October 19, funded with approximately $95 million of cash on hand and $21 million of equity. Westerman manufactures centrifuge casings and other major centrifuge components for Centrus. It becomes a subsidiary within Centrus and will continue to operate under the Westerman name.
Westerman has approximately 400 employees and four facilities in Ohio, Oklahoma, and Wyoming. Founded in 1909, it also serves non-nuclear customers in oil and gas and other industrial markets. Centrus acquired all of Westerman's business lines.
Centrus said it expects the transaction to be accretive to adjusted earnings per share in the first year following closing and to result in lower project costs through an integrated supply chain. The acquisition supports Centrus' previously announced multi-billion-dollar expansion of uranium enrichment capacity, the company said.
Jacob Garrett, Westerman's CEO, becomes president of Westerman and a vice president of Centrus. Barclays served as financial advisor to Centrus, and Wachtell, Lipton, Rosen & Katz as legal counsel.