Furmanite Announces Agreement to Acquire ENGlobal’s Gulf Coast Operations

  Furmanite Announces Agreement to Acquire ENGlobal’s Gulf Coast Operations

    Will Form New Specialty Project Execution and Technical Services Unit

Business Wire

HOUSTON -- July 16, 2013

Furmanite Corporation (NYSE: FRM), reported today that it has entered into an
agreement to acquire certain professional service assets of ENGlobal
Corporation (NASDAQ: ENG). Included in the assets to be acquired are offices
in Beaumont, Texas; Deer Park, Texas; Freeport, Texas; Baton Rouge, Louisiana
and Lake Charles, Louisiana, which provide specialty technical services
relating to the development, management and execution of projects, as well as
ENGlobal’s related In-Plant operations throughout the Gulf Coast region which
are supported by those offices. These combined ENGlobal operations provide
project planning, professional engineering, downstream non-destructive testing
and inspection, construction management, mechanical integrity, field support,
quality assurance and plant asset management services. Current ENGlobal
customers include refining/petrochemical operators as well as maintenance and
Engineering and Construction contractors serving the downstream and midstream
oil and gas markets.

The transaction has been approved by the boards of directors for both
companies, and is expected to close within 60 days after the execution date
for the agreement. The current employees within these operations of ENGlobal,
totaling approximately 900 full-time professionals, will transition to
Furmanite Technical Solutions (“FTS”), a newly formed business unit of
Furmanite America, Inc., in connection with the transaction.

“FTS will operate as a synergistic “sister” unit to Furmanite’s existing
specialty industrial service operations, under the continuing leadership of
the current team,” said Charles R. Cox, Chairman and CEO of Furmanite. “We are
extremely pleased to welcome this entire talented team who bring significant
additional technical capabilities to Furmanite. They will enable us to vastly
expand the range of integrated services we can offer our customers, initially
to the Gulf Coast region, and ultimately throughout Furmanite’s extensive
global coverage.”

Robert C. “Bob” Smith, Senior Vice President of ENGlobal’s Gulf Coast project
operations, said, “This new relationship creates opportunities for growth and
positive future outcomes. As discussions with Furmanite progressed, we were
all struck by how unique and synergistic this combination of complimentary
talents will potentially be for all stakeholders. We are extremely excited
about the many possibilities to serve our customers better and with greater
resources than ever before!”

Gary Meyers, Vice President of ENGlobal’s Gulf Coast In-Plant operations,
added, “We have absolute confidence in Furmanite’s commitment to fully support
our new partnership, and deeply appreciate the confidence they have shown by
entrusting full operational leadership responsibility to our current team.
With this empowerment, and the huge advantage our combined abilities can bring
to our total customer base, we anticipate a very bright future for both the
Gulf Coast operation and all of Furmanite!”

“ENGlobal’s Gulf Coast operation is an excellent match for Furmanite,”
concluded Joe Milliron, President and COO of Furmanite. “We are very excited
about these new capabilities and the growth opportunities they bring to
Furmanite, including the ability to ultimately perform front end planning as
well as specialty project engineering and management across our international
footprint. We are also pleased that the values and culture of ENGlobal’s Gulf
Coast operations are remarkably consistent with those of Furmanite, and that
their experience and customer relationships are a natural complement to our
existing businesses. We believe the transaction will build shareholder value
by leveraging Furmanite’s strong capital base and enhancing future earnings
potential.”

ABOUT FURMANITE CORPORATION

Furmanite Corporation (NYSE: FRM), founded in 1920, is one of the world’s
largest specialty industrial services companies, providing world class
solutions to customer needs through more than 75 offices on six continents.
The Company delivers a wide portfolio of inspection, mechanical and
engineering services which help monitor, maintain, renew and construct the
global energy, industrial and municipal infrastructures. Furmanite serves a
broad range of industry sectors, including refining, offshore, sub-sea,
pipeline, power generation, chemical, petrochemical, pulp and paper, water
utilities, automotive, mining, marine and steel manufacturing. World
Headquarters and Global Support Operations are located in Houston, Texas;
Rotterdam, Netherlands; Kendal, United Kingdom and Melbourne, Australia. For
more information, visit www.furmanite.com.

Certain of the Company’s statements in this press release are not purely
historical, and as such are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These include statements
regarding management’s intentions, plans, beliefs, expectations or projections
of the future. Forward-looking statements involve risks and uncertainties,
including without limitation, the various risks inherent in the Company’s
business, and other risks and uncertainties detailed from time to time in the
Company’s periodic reports filed with the Securities and Exchange Commission.
One or more of these factors could affect the Company’s business and financial
results in future periods, and could cause actual results to differ materially
from plans and projections. There can be no assurance that the forward-looking
statements made in this document will prove to be accurate, and issuance of
such forward-looking statements should not be regarded as a representation by
the Company, or any other person, that the objectives and plans of the Company
will be achieved. All forward-looking statements made in this press release
are based on information presently available to management, and the Company
assumes no obligation to update any forward-looking statements.

Contact:

Furmanite Corporation
Investor Relations, 713-634-7775
investor@furmanite.com
 
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