Hitachi Grabs Nuclear Fuel Storage Co. for $45M
The target, Nac International, provides transportation services for radioactive material and consulting services to governments
Hitz Holdings USA will pay $45 million for Nac International Inc., a company that specializes in technology for interim storage of nuclear fuel.
Norcross, Ga.-based Nac has been owned by Usec Inc. (NYSE: USU), a company that supplies enriched uranium fuel, since 2004. Usec paid $16 million for the business. The target also provides transportation services for radioactive material, and nuclear industry and government consulting services. Usec is selling Nac to focus on its core uranium enrichment business.
Hitz is a subsidiary of Hitachi Zosen Corp., which has a standing business relationship with Nac as a fabricator of dry cask storage and transportation systems in Japan. Hitachi engineers and manufactures environmental systems, industrial plants, machinery, equipment and disaster prevention systems.
“In the aftermath of events at Fukushima, there is a greater focus on spent fuel storage. Hitachi Zosen has been actively involved in NAC activities through fabrication work and is well positioned to further develop market opportunities for NAC’s innovative systems,” says John Welch, president and chief executive of Usec.
The deal was announced late Jan. 24 and is subject to approval from the Committee on Foreign Investments in the U.S.
Lazard served as Usec’s financial adviser, while Skadden Arps Slate Meagher & Flom LLP served as legal counsel. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. and Bank of Tokyo-Mitsubishi UFJ LTd. acted as Hitachi’s financial advisers. Kelley Drye & Warren LLP and City-Yuwa Partners were Hitachi’s legal counsel.
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