EnergySolutions, which does work at Hanford, has reached an agreement to be purchased by Energy Capital Partners and become a private company, it announced Monday.
EnergySolutions shareholders will receive $3.75 in cash for each share of common stock, a premium of about 20 percent above the average closing share price of EnergySolutions common stock over the last month.
The transaction has an estimated value of $1.1 billion, according to EnergySolutions.
Energy Capital plans to operate EnergySolutions as a standalone business operation with the current management team remaining in place, according to EnergySolutions.
At the Hanford nuclear reservation, EnergySolutions owns Washington River Protection Solutions, the Hanford tank farm contractor, with URS Corp. At the tank farms, 56 million gallons of radioactive waste from the past production of weapons plutonium are held in underground tanks.
It also built the EnergySolutions Engineering Laboratory with NuVision Engineering. The $3 million laboratory dedicated in August was donated to Washington State University Tri-Cities, and EnergySolutions is leasing it back at a nominal fee to continue testing of mixing systems for the Hanford vitrification plant.
The company is based in Salt Lake City but its engineering and technology division is based in Richland. About 120 people are employed by EnergySolutions in Richland.
Energy Capital is a private equity firm with offices in New Jersey and California that invests in energy and energy infrastructure companies and projects.
We look forward to investing capital in support of managements strategic vision to continue to expand the companys business both in North America and internationally, Tyler Reeder, a partner at Energy Capital, said in a statement.
Energy Capital sees opportunity for growing the decommissioning and disposal business in the United States and for bidding on work in Europe, he said.
The deal will provide investment capital to expand and grow business, David Lockwood, president of EnergySolutions, said in a statement.
As part of the Energy Capital network of portfolio companies, EnergySolutions also will be able to use the firms management and operational expertise, Lockwood said.
Under terms of the agreement, EnergySolutions will continue to solicit purchase proposals from other companies through Feb. 6.
The EnergySolutions board has approved the purchase by Energy Capital, but stockholders still must approve it.