Bulletin: BWX Technologies Inc.'s Announced Acquisition Of Kinetrics Will Complement Its Existing Portfolio

NEW YORK (S&P Global Ratings) Jan. 7, 2025--S&P Global Ratings today said that BWX Technologies Inc.'s (BB/Stable/--) announced agreement to acquire Kinectrics is consistent with our understanding of the company's growth strategy, which includes periodic acquisitions of this scale. Kinectrics provides full-lifecycle nuclear services to a significant customer base. We believe the acquisition fits well with BWX's existing portfolio because it will fill in some gaps in the service lifecycle and complement existing areas. We expect the $525 million transaction will close in mid-2025, subject to the receipt of required approvals. We anticipate the company will fund the purchase primarily with its revolver. The transaction does not impact BWX's credit measures relative to our forecast, which incorporates moderate acquisition activity.

...NEW YORK (S&P Global Ratings) Jan. 7, 2025--S&P Global Ratings today said that BWX Technologies Inc.'s (##/Stable/--) announced agreement to acquire Kinectrics is consistent with our understanding of the company's growth strategy, which includes periodic acquisitions of this scale. Kinectrics provides full-lifecycle nuclear services to a significant customer base. We believe the acquisition fits well with BWX's existing portfolio because it will fill in some gaps in the service lifecycle and complement existing areas. We expect the $525 million transaction will close in mid-2025, subject to the receipt of required approvals. We anticipate the company will fund the purchase primarily with its revolver. The transaction does not impact BWX's credit measures relative to our forecast, which incorporates moderate acquisition activity. We expect free operating cash flow (FOCF) to debt will be 15%-19%, funds from operations (FFO) to debt will be 23%-27%, and debt to EBITDA will be 2.5x-2.9x throughout...

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