As part of the company-wide transformation programme, which includes the sale of non-core assets, Amec Foster Wheeler announces that it has completed the sale of its circulating fluidised bed (CFB) boiler business to Sumitomo Heavy Industries, Ltd (SHI), for a consideration of USD, the net proceeds of which will be used to reduce net debt.
The CFB boiler business is the largest part of GPG. The remaining GPG steam generator businesses include the heat recovery steam generator and industrial boilers businesses and these are also expected to be sold during 2017.
The North American aftermarket services business, originally part of GPG, is being retained and since the beginning of 2017, has been operating as part of Amec Foster Wheeler's Power & Process business.
Amec Foster Wheeler's transformation programme was launched by its Chief Executive Officer, Jon Lewis, following a company-wide review. The core components of the transformation programme include implementing a new leaner operating model designed to be closer to projects and customers, delivering cost efficiencies across the business, a focus on improving compliance and consistency in how the business operates, refreshing the company strategy and disposing of non-core assets.
In addition to the sale of the CFB boiler business, Amec Foster Wheeler has already completed the sale of a number of smaller assets.
We have made significant progress with the company wide transformation programme that we launched last year. The completion of the sale of the CFB boiler business is a milestone in this programme. We are continuing to implement the programme enabling us to better serve our customers and strengthen the company's balance sheet.