Thursday, March 30, 2000
Washington PostMaryland Firm to Buy Nuclear Waste Line
By Dana Hedgpeth Washington Post Staff Writer
A Columbia-based hazardous waste firm said it will buy the nuclear waste business of Waste Management Inc. in a $65 million deal that would significantly boost revenue.GTS Duratek Inc. will take over the Denver-based division for $55 million in cash and up to another $10 million, depending on closing conditions. The deal is subject to regulatory approvals and is likely to close in three months.
The 600 employees of Waste Management's subsidiary, called Waste Management Nuclear Services (WMNS), will remain in their Denver offices, said Craig Bartlett, treasurer of GTS Duratek. The nuclear services division treats low-level radioactive waste for electric utilities and the federal government. It is expected to add $100 million in revenue to GTS Duratek.
"It's combining our technology expertise with their on-site service expertise," Bartlett said.
GTS Duratek, founded in 1983, has 1,300 employees across the country, with 200 in Columbia. The company treats radioactive and hazardous waste using metal recycling, incineration and thermal methods. It has plants in Tennessee and its customers include the Department of Energy and nuclear power plant operators.
Last year, GTS Duratek reported its net income rose to $11.5 million on revenues of $177.2 million, compared to a net loss of $2.4 million on revenue of $160.3 million the year before. It made money after it closing a facility in South Carolina.
Under the deal, GTS Duratek will help run WMNS' radioactive waste handling, transportation, treatment and site cleanup and its low-level radioactive waste disposal facility at Barnwell, S.C.
Houston-based Waste Management said the sale of the nuclear waste operations stems from its strategy to refocus on its core North American solid waste operations. The company said it will use proceeds of the sale to reduce debt and make acquisitions. Waste Management is the biggest solid waste company in the country.