Foster Wheeler AG
) recently announced that its Global Power Group's subsidiary
will be acquiring Siemens Environmental Systems and Services
business from Siemens Energy, Inc. The financial terms of the
deal were not disclosed. However, the transaction is expected to
close in the second quarter of 2014. Wheelabrator Air Pollution
Control and Advanced Burner Technology Company, which were
earlier acquired by Siemens Environmental, will also be a part of
Foster Wheeler, post this acquisition.
Siemens Environmental primarily provides comprehensive
solutions for clean air technologies including desulfurization
solutions for both wet and dry flue gas (FGD), particulate
control solutions for fabric filters and electrostatic
precipitators, controlling acid gas and mercury as well as
solutions for NOx reduction and combustion optimization
Air pollution control and industrial ventilation products
command a multi-billion dollar market, which is still witnessing
rapid growth. The rising demand for clean air and water as well
as an environment free of industrial pollutants are the primary
factors behind this booming industry.
Moreover, most of the governments are tightening regulations
for controlling air pollution. Thus the companies in this
industry are compelled to upgrade technologies to meet the
stringent environmental criterion.
This acquisition is a strategic move by Foster Wheeler to
broaden its existing portfolio, thereby enabling it to not only
provide competent solutions but also strengthen its presence in
the air pollution control industry.
This deal comes after Foster Wheeler's announcement of it
being acquired by AMEC plc on Feb 13. As per the agreement, AMEC
will be acquiring all the issued and to-be-issued share capital
of Foster Wheeler for about $3.3 billion or $32.69 per share.
However, the AMEC deal is presently under scrutiny by many
securities litigation firms for any possible judiciary
infringement. Recently, Levi & Korsinsky, LLP alleged a
possible violation of fiduciary duties in the deal, following
which a complaint was filed.
Foster Wheeler currently carries a Zacks Rank #3 (Hold). Some
better-ranked players in the engineering and heavy industry worth
a look include
AECOM Technology Corp.
Quanta Services, Inc.
). All three stocks have a Zacks Rank # 2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis
FOSTER WHELR AG (FWLT): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
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