8:00 | 01.10.2009
Baker Completes Sale of Energy Business to Wood Group; Will Focus on Growing Core Engineering Business
Michael Baker Corporation (NYSE Amex: BKR) announced today that it has
completed the sale of its energy business segment (“Baker Energy”) to a
subsidiary of international energy services company John Wood Group PLC
(“Wood Group”), a move that will enable Baker to focus on its core
engineering, architecture and construction services business. The
purchase price was $37.9 million, paid in cash, plus a
yet-to-be-determined price adjustment based on the net assets as of
September 30, 2009.
“This transaction presents a true win-win situation for both companies,”
said Brad Mallory, Baker’s president and chief executive officer. “It is
an important element of our corporate strategy to focus squarely on and
grow our core engineering and construction services business, and will
position Wood Group as a market leader for its services in the Gulf of
Mexico and internationally. We wish our Energy employees well in this
new endeavor, and thank them for their dedication to Baker over the past
19 years and for the quality services they have provided to Baker’s
clients while maintaining an exemplary safety record.”
Morgan Joseph & Co. Inc. served as financial advisor to Michael Baker
Corporation in connection with the sale of Baker Energy, and Reed Smith
LLP acted as Baker’s legal advisor in the transaction.
Baker Energy (www.bakerenergy.com)
works with oil and gas companies worldwide to provide total asset
management solutions. By integrating its diverse operating and
management skills, Baker Energy has evolved into a single source
supplier of comprehensive energy services, including operations and
maintenance management solutions, competency-based personnel recruiting
and training, operations and maintenance manpower and supply chain and
logistics management services. Its revenues in 2008 were $243.5 million,
and it currently employs approximately 2,400 people.
Wood Group (www.woodgroup.com)
is an international energy services company with more than $5.0 billion
in sales, employing 27,000 people worldwide and operating in 50
countries. Wood Group has three businesses—Engineering & Production
Facilities, Well Support and Gas Turbine Services—providing a range of
engineering, production support, maintenance management, and industrial
gas turbine overhaul and repair services to the oil and gas, and power
generation industries worldwide. Baker Energy will become part of
the Engineering and Production Facilities business.
Michael Baker Corporation (www.mbakercorp.com)
provides architecture, engineering and construction services for its
clients’ most complex challenges worldwide. The firm’s primary business
areas are aviation, defense, environmental, facilities, geospatial,
homeland security, municipal & civil, pipelines & utilities,
transportation and water. With more than 2,300 employees in over 40
offices across the United States, Baker is focused on creating value by
delivering innovative and sustainable solutions for infrastructure and
the environment.
Conference Call
Michael Baker Corporation has scheduled a conference call and webcast
for Thursday, October 1, at 10:00 AM Eastern Daylight Savings Time to
discuss this announcement. Please call 800-860-2442 at least 10 minutes
prior to the start of the call. To access the webcast, please visit the
investor relations portion of Baker’s website at www.mbakercorp.com.
(The above information contains forward-looking statements concerning
our future operations and performance. Forward-looking statements are
subject to market, operating and economic risks and uncertainties that
may cause our actual results in future periods to be materially
different from any future performance suggested herein. Factors that may
cause such differences include, among others: increased competition;
increased costs; changes in general market conditions; changes in
industry trends; changes in the regulatory environment; changes in our
relationship and/or contracts with the Federal Emergency Management
Agency (“FEMA”); changes in anticipated levels of government spending on
infrastructure, including the Safe, Accountable, Flexible, Efficient
Transportation Equity Act—A Legacy for Users (“SAFETEA-LU”); changes in
loan relationships or sources of financing; changes in management; and
changes in information systems. Such forward-looking statements are made
pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995.)
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