US-based nuclear components supplier BWX Technologies has agreed to acquire Kinectrics, a provider of engineering, testing, and consulting services, for up to $525m.
Based in Canada, Kinectrics provides lifecycle management services in the energy sector with more than 1,300 engineers and technical experts located across its 20 sites.
The company serves the commercial nuclear power and transmission markets worldwide and produces and supplies isotopes for the radiopharmaceutical industry.
The acquisition, which includes Kinectrics’ net pension, debt liabilities and transaction expenses, is expected to be completed in the middle of 2025.
Upon closing, Kinectrics will operate as a BWXT subsidiary, and its financial results will be reported within BWXT’s Commercial Operations segment.
Kinectrics president and CEO David Harris will continue in the same position, reporting to BWXT commercial operations president John MacQuarrie.
BWXT said the acquisition aligns with its strategy to address current and future demand for nuclear projects and services worldwide.
BWXT commercial operations president John MacQuarrie said: “This acquisition expands our ability to deliver end-to-end solutions to existing and new customers more efficiently.
“The investment uniquely brings together two industry leaders with complementary expertise and service offerings in the growing commercial nuclear power and nuclear medicine markets.
“With the talented team joining from Kinectrics, we are strengthening our ability to meet our customers’ evolving needs.”
Kinectrics is expected to generate revenue of around $300m in 2024, through its core business segments, commercial power and nuclear medicine.
BWXT said that the acquisition will expand its capabilities, including lifecycle management, specialised plant services and engineering, nearly doubling its workforce.
Kinectrics will complement its commercial operations, expanding its portfolio of products and services in the global nuclear power and radiopharmaceutical industries.
In the commercial nuclear power market, the Canadian company would bring a wide range of lifecycle support services, strengthening BWXT’s position in the CANDU reactor market.
In nuclear medicine, Kinectrics would add additional isotope irradiation and production technologies including Isogen, its joint venture with France-based Framatome.
Earlier this year, BWXT announced a $60m expansion at its facility in Cambridge, Ontario, to create around 200 long-term jobs for skilled workers, engineers, and support staff for locals.
Last year, BWXT Canada, a subsidiary of BWX Technologies, inked a memorandum of understanding with Westinghouse Electric Company to support nuclear newbuild developments in Canada and internationally.
