Charlotte-based power equipment company Babcock & Wilcox Enterprises will be selling off two of its businesses in a $130 million deal, the company announced Wednesday.
The company has agreed to sell off its MEGTEC and Universal subsidiaries to German engineering firm Dürr AG. The deal is expected to close in the third quarter of 2018.
Babcock & Wilcox will use the proceeds from the sale of the two environmental technology businesses to pay off debt and improve the company’s “financial flexibility,” the company said.
“Going forward, the Company’s strategic focus will continue to be on optimizing its market-leading portfolio … and driving efficiencies and cost reductions throughout the organization,” B&W stated regarding the sale.
The company has struggled in the past year to recover from losses in its renewable energy business and revive its struggling finances. In 2017, B&W reported net losses of $379 million, in addition to facing shareholder lawsuits and pressure from investors to cut costs or otherwise make changes.
In February, the company, which employs about 100 at its Charlotte headquarters, replaced CEO James Ferland with former Senior Vice President Leslie Kass.
Over the course of 2017, B&W’s stock price fell 65 percent, making it the worst performing stock of all 25 major companies based in the Charlotte area. The shares were down more than 1 percent to $2.49 in early afternoon trading.