Jeremy L. Dillon
RW Monitor
2/14/2014
EnergySolutions is set to purchase Studsvik’s U.S. operations in a deal worth $23 million. The sale includes Studsvik’s operations in Erwin and Memphis, Tenn., as well as its holding in Semprasafe. Additionally, EnergySolutions acquires patents related to the THOR treatment technology in China and the rights to use the patents in the commercial market in North America. “This acquisition and the buyout of Studsvik’s interest in the Semprasafe joint venture will further strengthen our position as the market leader in low-level nuclear waste,” EnergySolutions President and CEO David Lockwood said in a release. “With this transaction, we are expanding our range of products and services to offer our customers a complete solution – transportation, processing and disposal – for waste management.” Semprasafe is the joint venture between EnergySolutions and Studsvik that processes ion-exchange resins by blending them together using the THOR treatment technology, and with this purchase, EnergySolutions will take over full-ownership of the facility. EnergySolutions will take over the operations it purchased from Studsvik on March 1.
Studsvik decided to sell these holdings as a way to reduce costs in its U.S. market, according to President and CEO of Studsvik Michael Mononen. “The sale of the American operations will improve our financial situation and reduce the exposure towards the challenging American market,” Mononen said in a release. “All in all, the transaction means that Studsvik will be a more stable company with potential for increased margins and growth.” According to the Investor’s Year-End Report put out by Studsvik, the board of directors believes this sale eliminates a financial risk for the company. “The Board’s assessment is that EnergySolutions is in a better position than Studsvik to develop Erwin and Memphis in close interaction with its already established disposal and waste treatment operations, while through the transaction, Studsvik is eliminating a considerable ?nancial risk,” the report said.
Studsvik’s 2013 Results
Studsvik also announced its year-end results for 2013, with a positive operating profit for the year although the fourth quarter saw a negative operating profit. For the full year, operating profit was approximately $2.5 million, up about $100,000 from 2012, while operating profit for the fourth quarter of 2013 was negative $1.56 million, down from the approximately $2 million made in the same period of 2012. Sales for the year increased to $41 million, up from the $40 million in 2012. From the U.S. market, the company had sales of approximately $800,000 in the fourth quarter of 2013, and for the year, it had sales of approximately $1.8 million. The operating result from the fourth quarter was a negative $960,000 and for the year was a negative $1.5 million.
