Kvaerner, the Anglo-Norwegian engineering and construction group, today announced that it has signed a Letter of Intent for the sale of the Kvaerner Cleveland Bridge business to its current management.
Negotiations will continue between the parties over the coming weeks, towards the signing of a definitive agreement and completion before the end of the year.
The sale, which is part of the Group’s program for disposal of non-core and loss making activities, will comprise Kvaerner’s steel fabrication and bridge building activities in Darlington, England, the steel fabrication business in Malaysia, and its 49% stake in Cleveland Bridge & Engineering Middle East, in the UAE. Combined, the activities employ a total staff of approximately 2,100 and have annual revenues of approximately US$240 million.
The total consideration for the sale will be determined upon completion. The transaction is, however expected to produce an accounting loss to Kvaerner, although this falls within the overall provision announced in the first quarter of the year.
ENDS
For further information:
Paul Emberley, Vice President, Group Communications, Kvaerner PLC: +44 (0)20 7339 1035 or Cheryl Eaton, PR Manager, Kvaerner Construction: +44 (0)1923 423030 or www.kvaerner.com