Willbros Group, Inc. announced it has closed on the sale of its Professional Services segment to TRC Companies in a cash deal valued at $130 million, subject to normal working capital and other adjustments.
“The close of this transaction is a milestone in the transformation of Willbros to a lean organization focused on energy infrastructure construction and maintenance,” said Willbros outgoing Chairman and CEO John T. McNabb II. “I am confident that we are taking the right actions to return Willbros to prominence in its markets.”
Willbros received payment at closing, less a balance of $7.5 million to be paid when certain customer consents, expected in the near term, are received. Willbros will apply the majority of the proceeds from the sale to reduce its term loan to less than $100 million.
After customary closing costs, the remaining funds from this sale and the October sale of the Bemis subsidiary for $19.2 million, of about $43 million, will be used for working capital and other purposes.
“This transaction enables us to significantly reduce our term loan debt and improves our financial profile,” said Michael J. Fournier, president and incoming CEO. “This will allow us to reduce our term loan balance from $270 million at Dec. 31, 2014 to under $100 million at Dec. 31, 2015. I am confident that this transaction will boost customer confidence and enhance the rebuilding of our backlog.”