Amec Foster Wheeler cuts net debt with $170m CFB business deal

Engineering giant Amec Foster Wheeler has announced the nine-figure sale of its circulating fluidised bed (CFB) boiler business to Sumitomo Heavy Industries Ltd (SHI).

The firm this morning (June 26) announced the completion of the $170m (£133m) deal, which forms part of its ongoing company-wide transformation programme.

Amec Foster Wheeler said the cash raised will be used to reduce its net debt. At the end of 2015, the company had a net debt of $1.34bn (£946m).

The CFB boiler business is the largest part of Amec Foster Wheeler’s Global Power Group (GPG) unit, whose remaining businesses include heat recovery steam generator and industrial boiler arms.

Both aspects of GPG are expected to also be sold in 2017.

However, Amec Foster Wheeler will retain the North American aftermarket services that were originally part of GPG. Since the start of the year, the business has operated as part of the firm’s Power & Process arm.

Amec Foster Wheeler CEO Jon Lewis, who launched the transformation programme following a company-wide review, said: “We have made significant progress with the company wide transformation programme that we launched last year.

“The completion of the sale of the CFB boiler business is a milestone in this programme.”

He added: “We are continuing to implement the programme enabling us to better serve our customers and strengthen the company’s balance sheet.”

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