McDermott to Acquire Marine Mechanical Corporation
McDermott International, Inc. ("McDermott" or the "Company") has announced that its Government Operations subsidiary, BWX Technologies, Inc. ("BWXT"), has entered into a definitive agreement to acquire Marine Mechanical Corporation ("MMC") for approximately $75 million.
Headquartered in Euclid, Ohio outside of Cleveland, MMC designs, manufactures and supplies electro-mechanical equipment used by the United States Navy. MMC, employing approximately 250 people, generated revenues in 2006 of approximately $50 million and ended the year with backlog of approximately $165 million. McDermott intends to operate MMC as a unit of BWXT's Nuclear Operations Division.
"Marine Mechanical is a well-suited addition to our Nuclear Operations Division," indicated John A. Fees, Chief Executive Officer of McDermott's subsidiary, The Babcock & Wilcox Companies. "The U.S. Navy has safely traveled millions of miles due in large part to the components provided by BWXT and MMC. Combined, we expect this tradition of excellence to continue."
BWXT's acquisition of MMC is contingent upon obtaining clearance under the Hart-Scott-Rodino Antitrust Act and final due diligence. The transaction is expected to close prior to April 30, 2007.
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