CLINTON, N.J., Jan. 11, 2001 (BUSINESS WIRE)Foster Wheeler Corporation (NYSE:FWC) today announced that its Italian subsidiary, Foster Wheeler Italiana, Spa, has sold 50% of its interest in Lomellina Energia Srl to Fineldo Spa.
The transaction was closed on December 29, 2000. The exact terms of the purchase were not disclosed, but it involved a cash payment for 50% of Foster Wheeler Italiana Spa’s equity in Lomellina Energia Srl, plus the assumption of a corresponding proportion of the project’s debt by the purchaser. Including debt deconsolidation, the transaction will immediately reduce the amount of the debt recorded on Foster Wheeler’s consolidated balance sheet by approximately $130 million.
“The sale is an important step towards the objective of strengthening our balance sheet and focusing resources on our core business. Going forward, we are committed to continue with this course of action,” said Gilles A. Renaud, senior vice president and CFO of Foster Wheeler Corporation.
Fineldo Spa is the holding company of the Merloni Group, one of the leading Italian industrial conglomerates. Fineldo’s holdings include a controlling interest in Merloni Elettrodomestici Spa, the third largest European producer of household appliances, and in MPE Spa, a company currently engaged in power project development and electricity trading.
Lomellina Energia Srl is a special purpose company formed by Foster Wheeler Italiana Spa, a wholly owned subsidiary of Foster Wheeler Corporation, for the development, construction and operation of a waste-to-energy project using Foster Wheeler circulating fluidized bed (CFB) technology. The plant is located in Parona, near Milan, Italy.
The 200,000 tons/year facility, in commercial operation since October 1, 2000, is the first Italian waste-to-energy project developed by a private company with project financing. Prior to the sale, Foster Wheeler Italiana Spa owned the entire capital stock of Lomellina Energia Srl.
Foster Wheeler and Merloni have cooperated recently in power project developments in Italy, including a 50% partnership for the construction and operation of two cogeneration plants in Teverola and Ferrara, Italy. “This transaction reinforces the business partnership with the Merloni Group with positive implications for our current and future activities in the European Markets,” said Gianfranco Brustia, vice chairman of Foster Wheeler Italiana Spa and head of the Italian Power Division.
Foster Wheeler Corporation is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research, plant operations and environmental services. The Corporation’s headquarters are at Clinton, N.J. For more information about Foster Wheeler, visit its web site at #