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ENGlobal Announces Agreement to Sell Its Gulf Coast Engineering and In-Plant Operations to Furmanite



ENGlobal Announces Agreement to Sell Its Gulf Coast Engineering and In-Plant
Operations to Furmanite

HOUSTON, July 16, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG),
a leading provider of energy-related engineering and automation services,
announced today that it has signed a definitive agreement under which
ENGlobal's Gulf Coast engineering and in-plant operations will be sold to
Furmanite America, Inc. ("FAI"), a subsidiary of Furmanite Corporation
(NYSE:FRM). The total value of the transaction to ENGlobal is expected to be
approximately $21.5 million, consisting primarily of cash at closing and a
$3.5 million promissory note issued with a parent company guarantee.

ENGlobal's Gulf Coast engineering operations consist of its Beaumont, TX,
Baton Rouge, LA, Lake Charles, LA, Deer Park, TX, and Freeport, TX offices,
which primarily perform work for downstream clients across the region. The
Company will retain its Engineering operations and the entirety of its
Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver,
CO, and Chicago, IL, which primarily perform midstream and downstream related
projects.

ENGlobal intends to use the net proceeds from this transaction to repay its
outstanding debt. The transaction has been approved by the boards of directors
for both companies, and is expected to close within 60 days, subject to lender
approval and the completion of customary conditions. In addition, the
companies have agreed to facilitate a smooth transition of corporate service
functions and to support each company's business development efforts. Under
terms of the agreement, approximately 900 employees will transfer from
ENGlobal to Furmanite.

"The transaction with Furmanite, representing approximately half of our
business, has stood out among all alternatives as making the most sense for
our employees, clients and shareholders," said William A. Coskey, P.E.,
Founder, Chairman and Chief Executive Officer. "The ongoing ENGlobal
operations will become strategically focused, well positioned for growth, and
essentially free of bank debt. We will continue to build on the expertise of
our heritage Engineering and Automation segments and also expect to target
specific engineered solutions, utilizing both in-house and third party
intellectual property."

Mr. Coskey continued, "We are pleased to announce that throughout our
turnaround plan over the last year – and through Closing of this transaction,
we will have reduced our debt and vendor obligations by approximately $50.0
million. The resulting revitalized Company with 500 employees will become the
foundation from which to rebuild ENGlobal."

The Company expects that this transaction will substantially complete its
review of strategic alternatives. In October 2012, ENGlobal announced its plan
to explore strategic alternative options, which included raising capital,
selling a portion of the Company's assets, and the possible sale or merger of
ENGlobal, among other alternatives. Since that time, the Company discontinued
its Electrical Services division and divested its Land/Right of Way and
Midstream Inspection divisions.

About ENGlobal

ENGlobal (Nasdaq:ENG), founded in 1985, is a provider of engineering and
related project services principally to the energy sector throughout the
United States and internationally. ENGlobal operates through two business
segments: Automation and Engineering & Construction. ENGlobal's Automation
segment provides services related to the design, fabrication & implementation
of process distributed control and analyzer systems, advanced automation, and
related information technology. The Engineering & Construction segment
provides consulting services relating to the development, management and
execution of projects requiring professional engineering as well as downstream
inspection, construction management, mechanical integrity, field support,
quality assurance and plant asset management. ENGlobal currently has
approximately 1,400 employees in 12 offices and 9 cities. Further information
about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations regarding its
operations and certain other matters discussed in this press release may
constitute forward-looking statements within the meaning of the federal
securities laws and are subject to risks and uncertainties including, but not
limited to: (1) our ability to realize the benefits of the sale of the Gulf
Coast operations, including our ability to collect unbilled trade receivables;
(2) whether the exploration and consideration of strategic alternatives will
result in any transaction and such transaction's effects on the Company and
its stockholders; (3) our ability to comply with the terms of the forbearance
agreement with respect to the Company's Revolving Credit and Security
Agreement, including our ability to develop a plan to restore compliance with
the terms of such credit facility; (4) our ability to obtain the cure or
waiver of defaults under the Company's Revolving Credit and Security
Agreement; (5) our ability to achieve profitability and positive cash flow
from operations; (6) our ability to collect accounts receivable and process
accounts payable in a timely manner; (7) our ability to respond appropriately
to the current worldwide economic situation and the resulting decrease in
demand for our services and competitive pricing pressure; (8) our ability to
achieve our business strategy while effectively managing costs and expenses;
(9) our ability to accurately estimate costs and fees on fixed-price
contracts; (10) the effect of changes in the price of oil; (11) delays related
to the award of domestic and international contracts; (12) our ability to
execute to our internal performance plans such as our productivity improvement
and cost reduction initiatives; (13) the effect of changes in laws and
regulations with which the Company must comply and the associated costs of
compliance with such laws and regulations, either currently or in the future,
as applicable; (14) the effect of changes in accounting policies and practices
as may be adopted by regulatory agencies, as well as by the FASB; (15) the
effect on our competitive position within our market area in view of, among
other things, increasing consolidation currently taking place among our
competitors; (16) our ability to win new business and convert those orders to
sales within the fiscal year in accordance with our annual business plan;
(17) achievement of our acquisition and related integration plans; and
(18) the uncertainties of the outcome of litigation. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors
detailed from time to time in ENGlobal's filings with the Securities and
Exchange Commission. In addition, reference is hereby made to cautionary
statements set forth in the Company's most recent reports on Form 10-K and
10-Q, and other SEC filings.

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CONTACT: Natalie S. Hairston
         (281) 878-1000
         ir@ENGlobal.com

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