B&W to Acquire GE Energy’s Electrostatic Precipitator and Emissions Monitoring Businesses

McDermott International, Inc. (NYSE: MDR) (“McDermott”), announced today that one of its subsidiaries, Babcock & Wilcox Power Generation Group, Inc. (“B&W”) has signed a contract with GE Energy, a division of General Electric Company, to acquire its electrostatic precipitator (“ESP”) and emissions monitoring business units.

Under the terms of the transaction, B&W will acquire the assets of GE Energy’s ESP and emissions monitoring business units, including its ESP replacement parts and mechanical components product lines, ESP performance-enhancing hardware and controls, continuous emissions monitoring systems, data acquisition and handling system, as well as the ESP and emissions monitoring remote diagnostics and services offerings. These products and services are used by a wide variety of power generation and industrial customers to monitor and control particulates and other emissions from power plants, factories and other facilities.

GE Energy’s ESP and emissions monitoring businesses employ approximately 220 people at offices in Kansas City, Missouri, Folkston, Georgia, Newport News, Virginia, and Hatfield, Pennsylvania, in the United States, as well as locations globally. Employees will transition to B&W in the coming months.

“This acquisition enhances B&W’s already strong environmental equipment and services capabilities,” said Richard L. Killion, President and Chief Operating Officer of Babcock & Wilcox Power Generation Group, Inc. “We’re confident the knowledge and experience of these highly-skilled employees and the ability to offer new products and services to current and prospective customers will be a valuable addition to our strategic growth plan.”

The deal is expected to close following the satisfaction of customary closing conditions. Financial terms of the agreement were not disclosed.

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 25,000 employees.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this release that are forward-looking and provide other than historical information involve risks and uncertainties that may impact the actual results realized from the proposed acquisition. The forward-looking statements in this release include statements regarding the closing of and expected benefits from this acquisition. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, delays or other difficulties in satisfying closing conditions and difficulties in integrating the acquired business with B&W's operations.