Furmanite To Sell FTS Division

(RTTNews) - Furmanite Corp. (FRM) said Friday that it has entered into a definitive agreement under which Burrow Global, LLC will acquire substantially all of the assets of the company's Furmanite Technical Solutions division of its Engineering and Project Solutions operating segment for a purchase price, consisting of cash and debt, of $1.6 million plus estimated net working capital of about $12.8 million, and the assumption of certain related liabilities.

Furmanite expects to incur a pre-tax loss of less than $1 million as a result of the sale deal.

The deal is expected to close on September 28.

Included in the sale are Furmanite's Beaumont, Texas; Baton Rouge, Louisiana; Lake Charles, Louisiana; Deer Park, Texas; and Freeport, Texas offices, which mainly perform in-office and in-plant engineering work for downstream clients in the Gulf Coast region. Burrow Global will also assume Furmanite's obligations under the real estate leases and contracts utilized by the FTS operations. Furmanite will retain the process management inspection component of its Engineering & Project Solutions segment, which is based in Tulsa, Oklahoma. Furmanite will provide limited transition services to the FTS business for a period following the closing.

Furmanite had announced in May that it had retained Lazard Freres & Co. as financial advisors to assist in an evaluation of strategic alternatives.