By Daniel Webster, dWeb.News Publisher
AKRON, Ohio–(BUSINESS WIRE)–Babcock & Wilcox Enterprises, Inc. (“B&W” or the “Company”) (NYSE: BW) announced today that it has signed a definitive agreement to acquire a majority ownership stake in Illinois-based solar energy contractor Fosler Construction Company Inc. (“Fosler Construction”), significantly enhancing its capabilities in solar energy. The transaction is expected to close at the end of September 2021, subject to customary closing conditions.
Fosler construction will remain part of B&W’s Renewable segment. Its Chief Executive Officer Paul Fosler will still lead the company, but he will keep a minority stake.
Fosler construction provides solar services for commercial, industrial, and utility-scale customers. It also owns two community projects in Illinois that are being developed under the Illinois Solar for All program. Founded in 1998 and employing approximately 120 people, it recently ranked in the top 10 percent of Inc. 5000’s listing of the nation’s fastest-growing private companies. It has a proven track record of successfully completing profitable solar projects using union labor. The company also aligns its model with increasing numbers of U.S. renewable project incentives. With a near-term pipeline that includes more than 1 gigawatt, the company is well-positioned to capitalize upon the U.S.’s high-growth solar market.
“This transaction aligns to B&W’s aggressive growth, expansion of our clean- and renewable energy businesses,” stated Kenneth Young (B&W Chairman and Chief executive Officer). “Fosler Construction has a strong reputation in the utility and commercial solar industry. We are excited about the opportunities to collaborate and capitalize on this market.” “B&W’s strong presence in energy will give Fosler Construction the scale and synergies to support its growth. This includes sales and operational support. It also gives Fosler Construction the resources and support of a larger parent company. Fosler Construction’s knowledge in the rapidly growing solar market combined with B&W’s access to existing customer relationships and resources will enable us to aggressively pursue renewable energy diversification and expansion. Young stated that they are thrilled to welcome Fosler Construction employees into the B&W family.
Fosler Construction CEO Paul Fosler said, “Fosler Construction has more than 20 years of construction experience and a dedication to supporting the growth of clean energy in the U.S. We’re proud of the work we’ve done and the great team of employees at Fosler who will continue to be a critical part of our success going forward. We believe this transaction will help propel our growth to take advantage of the significant solar installation pipeline we have on the near-term horizon, and we’re excited to join with B&W, which has more than 150 years of experience in energy and environmental technologies and a strong, highly experienced leadership team.”
About Babcock & Wilcox
Headquartered in Akron, Ohio, Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow us on LinkedIn and learn more at http://www.babcock.com.
About Fosler Construction
With more than 100 operational solar installations across the state of Illinois and active projects in New York, Virginia and Maryland, Fosler Construction is an experienced industry leader, committed to provide forward-thinking solar solutions with union labor, outstanding service, and the highest quality construction available in the solar industry. Fosler has a headquarters in Illinois and a satellite office located in New York.
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to our ability to close on the planned acquisition of Fosler Construction and the timing of such closing, the expected growth of the North American solar market, and the benefits expected to be achieved following the acquisition of Fosler Construction, including our ability to explore new opportunities in the U.S. power sector, propel our growth and take advantage of the solar installation pipeline. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to satisfy the conditions to closing and to consummate the planned acquisition of Fosler Construction, the impact of COVID-19 on the Company; the reaction of customers, suppliers and stockholders to the announcement or consummation of the acquisition; risks that the acquisition disrupts current plans and operations of the parties to the transaction; the amount of the costs, fees, expenses and charges related to the acquisition; the capital markets and global economic climate generally; and the other factors specified and set forth under “Risk Factors” in the Company’s periodic reports filed with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and its quarterly reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021. Actual results could differ materially from what is stated if any of these risks or other risk materializes. These forward-looking statements reflect management’s current beliefs and expectations. They are based on detailed assumptions. Although the Company believes these forward-looking statements to be reasonable, it is difficult to predict the effects of all known factors and impossible to anticipate all possible factors that could impact actual results. These forward-looking statements are only current as of the date of the release. We do not assume any obligation to revise or update any forward-looking statement except as required by law.
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