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Sun November 18 2018

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Toshiba sells bankrupt Westinghouse business

9 Jan Toshiba has agreed to sell Westinghouse Electric Company to a North American business services and industrials company.

Brookfield Business Partners together with institutional partners has entered into an agreement to acquire 100% of Westinghouse for a purchase price of approximately US$4.6bn (£3.4bn).

“Westinghouse is a high-quality business that has established itself as a leader in its field, with a long-term customer base and a reputation for innovation,” said Cyrus Madon , CEO of Brookfield Business Partners. “We look forward to bringing our significant expertise and reputation as a long-term owner and operator of critical infrastructure in the US and globally, as well as our deep facilities management capabilities, to enhance the company’s position as a leading global infrastructure services provider to the power generation industry.”

Westinghouse supplies infrastructure services to nuclear power generating facilities, providing engineering, maintenance, facilities management and repair services to its global customer base.

Westinghouse filed for bankrupcy in March after losing money on two US projects (link opens in new tab).

Brookfield said that the majority of the company’s profitability is delivered through regularly scheduled services which are provided under long-term contracts. It said that Westinghouse’s core business has generated stable margins and consistent free cash flow.

Closing of the transaction remains subject to Bankruptcy Court approval and customary closing conditions including, among others, regulatory approvals. The closure is expected to occur in the third quarter of 2018.

MPU

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