Dürr is forming a leading supplier of environmental technology systems for industrial exhaust-air purification, following a corporate acquisition in the United States. The Group is acquiring the industrial environmental technology business of Babcock & Wilcox Enterprises, Inc. (B&W). “Through this acquisition, we are establishing a leading company with sales of around € 400 million and the broadest technology and service range in the market. The global setup of the new unit provides an excellent basis for growth in the coming years”, says Dr Jochen Weyrauch, responsible for paint shop and environmental technology business as well as M&A on the Dürr AG Board of Management.
The purchase agreement, which was signed, comprises the acquisition of the three B&W subsidiaries, Babcock & Wilcox MEGTEC LLC, Babcock & Wilcox MEGTEC Holdings Inc. and Babcock & Wilcox Universal Inc. The purchase price will be calculated based on the enterprise value of the three companies, which amounts to around € 110 million. Closing is expected in the third quarter of 2018. It is subject to the satisfaction of usual antitrust closing conditions and regulatory approvals.
Business in exhaust-air purification technology for industrial processes has good growth prospects. Demand in emerging markets like China is growing, as increasingly strict emission levels are being introduced to protect the environment. In 2017, as much as 53 per cent of Dürr’s incoming orders in environmental technology were generated in the emerging markets, with China accounting for 34 per cent. In the established markets, in particular, service business is becoming increasingly important.