Oct 1 2009
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.
Source: http://www.bakerenergy.com/