Studsvik Acquires American Company RACE
2006-04-18, Studsvik has signed an agreement to acquire all shares in RACE Holdings LLC, operating in the field of radioactive waste management in the USA. The acquisition will almost double Studsvik’s sales in the Business Area Waste Treatment and give Studsvik an extra foothold in the American market for radioactive waste.
“The American market is highly interesting for Studsvik, both in terms of size and because of positive developments that create good business opportunities. The acquisition of RACE puts Studsvik in a very good position to grow, both in the commercial market and in the federal market for treatment of so called legacy waste”,comments Studsvik’s CEO Magnus Groth.
The RACE group had sales of USD 40.6 million and a workforce 120 in 2005. RACE conducts operations at its own process facilities in Memphis, Tennessee, where metal and other solid radioactive waste is treated. The company also offers transport and logistics services in radioactive waste.
Studsvik already offers treatment of wet radioactive waste at its own processing facility in Erwin, Tennessee and holds a leading position in the European market for treatment of radioactive metallic waste. In Sweden Studsvik has developed methods and techniques for waste management that can now be applied by RACE in the American market. RACE’s experience and know how from treatment of large components can be launched on markets outside the USA. Thus, the operations of Studsvik and RACE complement each other well.
The acquisition broadens the service offering and provides Studsvik with a strong base for continued expansion in the commercial American nuclear market. The acquisition will also create potential for breaking into the American decommissioning market.
Studsvik is acquiring RACE for USD 27,5 million plus transfer of operating credit of USD 8,5 million. The financing of the acquisition has been secured and consists of a combination of own funds and new loans raised in connection with the acquisition. The sellers are the founders, together with the private equity firm Source Capital. The founders will continue to be active in the management of RACE.
Studsvik is a leading service supplier to the international nuclear industry. The company has almost a half century’s experience of nuclear technology and radiological services.
Studsvik addresses a market in strong growth with specialized services in four Strategic Business Areas: Operating Efficiency and Safety, Service and Maintenance, Waste Treatment and Decommissioning. Studsvik has 1,300 employees in 7 countries and the company’s shares are listed on the Stockholm Stock Exchange. Studsvik group net sales 2005 amounted to SEK 1,116 million.
Waste Treatment is a focus area for the group’s future growth. The company runs a special facility in Sweden for the treatment of metallic Low Level Waste (LLW) and Intermediate Level Waste (ILW) as well as an incineration facility for Dry Active Waste. In the US, Studsvik is currently offering treatment of LLW and ILW in facilities in Erwin, Tennessee.
RACE Holdings LLC was founded 1999 and has since then been managed by the founders Gerald Webb, President and Bob Applebaum, Co- Chairman. RACE service offering includes services and logistics. The company owns and operates a special facility on Presidents Island, Memphis, Tennessee where dry and metallic LLW is treated. The facility has a strategic position with convenient access for transportation by road, railroad and water. The company also operates a set of transportation- and logistics services with a high capacity for radwaste components. It also operates its own logistics terminal.
RACE currently employs a workforce of 120 personell and has a strong client base. Prior to the Studsvik acquisition RACE Holdings LLC was owned by venture capital investor Source Capital and the founders.
- Contact Information
- Magnus Groth
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