Foster Wheeler Environmental Corp. acquired by Tetra Tech, Inc.
Foster Wheeler Ltd. announced the sale of the operating business of its wholly owned subsidiary, Foster Wheeler Environmental Corp., to Tetra Tech, Inc.
CLINTON, N.J., Mar 11, 2003 -- Foster Wheeler Ltd. announced the sale of the operating business of its wholly owned subsidiary, Foster Wheeler Environmental Corporation (FWENC), to Tetra Tech, Inc. on March 7, 2003.
As of the close, the company received immediate net cash proceeds of approximately $80 million. Foster Wheeler also expects to receive an additional $57 million before year-end under FWENC's contract with a federal agency, which was not included in the sale. These cash proceeds will be added to the company's worldwide cash balances as of December 31, 2002, of $429 million and will be available for general corporate purposes.
Raymond J. Milchovich, chairman, president and CEO of Foster Wheeler, stated, "Cash generation has been a very important part of our plan to restore Foster Wheeler to financial health. The additional liquidity and operating flexibility resulting from this transaction will allow us to focus on our balance- sheet issues and the growth of our very strong Engineering & Construction and Power businesses worldwide."
Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research, plant operation and environmental services. The corporation's operational headquarters are in Clinton, N.J. For more information about Foster Wheeler, visit www.fwc.com.