Studsvik sells waste treatment operations to EDF
Purchase to result in development of low level radioactive waste treatment and recycling in Europe
Studsvik AB (publ) has signed an agreement to divest its Waste Treatment business and facilities in Sweden and the UK to EDF Développment Environnement SA, a 100 % subsidiary of EDF SA, for a purchase price of SEK 355 million, subject to closing adjustments.
Studsvik's Waste Treatment business is world leader in low level radioactive waste treatment, with a strong customer base in Europe. Its mission is to provide safe and environmentally friendly services to nuclear and other customers generating low level radioactive waste in order to minimize the impact on health and environment. According to Studsvik, the waste is either recycled, free released or volume reduced and returned to the customer for final storage. In 2015, the divested business generated revenues of SEK 174 million.
The scope of the transaction includes Studsvik’s waste treatment assets and facilities situated at the Studsvik site, near Nyköping in Sweden, and a Metal Recycling Facility near Workington in the UK. EDF is a world leading French power company, majority owned by the French Government, and says they will develop the Waste Treatment business, and ensure that it will continue to play a critical role for Swedish and other nuclear operators in Europe. This will also safeguard the skills and competencies at the Swedish and UK sites and support local employment.
The closing of the transaction is expected during the third quarter of 2016.
As part of the deal, EDF and Studsvik have also agreed to join forces and collaborate in the areas of nuclear decommissioning and waste management.
“The divestment of the Waste Treatment business and the cooperation agreement with EDF position Studsvik for growth, building on a more stable and focused business platform. We will continue develop our Fuel and Materials Technology, and Consultancy businesses, not only in our home markets of Sweden, UK, Germany, USA and Japan, where many of our customers are preparing to decommission, but also in growing nuclear markets in Asia and the Middle East. The Transaction allows us to capitalize on our unique experience and capabilities and focus on delivering increased value for our customers and shareholders,” said Michael Mononen, Studsvik CEO.