BWX Technologies agreed to buy Kinectrics for about $525 million, including the assumption of Kinectrics’ net pension and debt liabilities and estimated transaction expenses. Kinectrics is a leader in offering lifecycle management services for the global nuclear power and transmission and distribution markets and in the production and supply of isotopes for the radiopharmaceutical industry.
This acquisition complements BWXT’s Commercial Operations segment and will enable an expanded portfolio of products and services for current and new customers in the global nuclear power and radiopharmaceutical industries. And in the commercial nuclear power market, Kinectrics brings a broad suite of lifecycle support services that will further strengthen BWXT’s position in the CANDU reactor market, increasing its exposure to the U.S. market and select international markets.
In nuclear medicine, Kinectrics provides additional isotope irradiation and production technologies and has played a critical role in the existing Lutetium-177 supply chain since 2022. And Kinectrics employs over 1,300 engineers and technical experts across its 20 sites worldwide.
Based in Toronto, Kinectrics is expected to generate revenue of about $300 million in 2024 in two core business areas: commercial power services and nuclear medicine.
— Commercial power services support all stages of the nuclear power plant lifecycle and other areas of the related grid ecosystem, including initial design and engineering, operational support and maintenance services, and transmission and distribution reliability services.
— Nuclear medicine includes isotope production services for the radiopharmaceutical industry, including Isogen, a joint venture between Kinectrics and Framatome.
Upon closing the deal, the acquisition will nearly double the workforce of BWXT’s Commercial Operations and expand its capabilities, including lifecycle management, specialized plant services and engineering, to support the North American and international nuclear markets.
This acquisition is targeted to close in the middle of 2025 and is expected to be modestly accretive to BWXT’s earnings, excluding purchase accounting and other one-time costs. Following the closing, Kinectrics will operate as a BWXT subsidiary, and its financial results will be reported within BWXT’s Commercial Operations segment.
David Harris, President & CEO of Kinectrics, will continue leading the organization and report to John MacQuarrie, President of BWXT Commercial Operations. This investment is one of BWXT’s strategic steps in response to the current and anticipated demand for nuclear projects and services worldwide. Earlier this year, BWXT announced a $60 million expansion at its facility in Cambridge, Ontario, to increase the plant’s footprint by 25 percent and create more than 200 long-term jobs for skilled workers, engineers, and support staff in the area.
KEY QUOTES:
“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. This includes supporting utilities as they explore ways to expand nuclear power generation through life extensions and new builds, partnering with small modular reactor designers seeking comprehensive regulatory, engineering, manufacturing, and aftermarket solutions, and collaborating with healthcare partners who require reliable isotopes for under-supplied medical isotopes revolutionizing oncology.”
– John MacQuarrie, president of BWXT Commercial Operations
