Centrus buys centrifuge maker Westerman for $116 million

what happened

Centrus Energy said it has completed the acquisition of Westerman Holdings, LLC, one of its largest suppliers, for approximately $116 million. The deal is funded with about $95 million of cash on hand and $21 million of equity. The company expects the transaction to be accretive to adjusted earnings per share in the first year after closing.

Westerman manufactures centrifuge casings and other key components for Centrus, and also serves customers in oil and gas. Founded in 1909, it has about 400 employees and four facilities in Ohio, Oklahoma and Wyoming. Westerman will keep its name as a subsidiary.

According to the source, the purchase is meant to broaden manufacturing capacity and diversify revenue beyond nuclear work.

why it matters

For markets, the deal matters as a step toward securing the supply chain for uranium enrichment, which is important given Centrus's planned capacity expansion. Bringing a key supplier in-house may lower project costs and reduce reliance on outside contractors, while the push into oil, gas and industrial markets adds revenue sources beyond the nuclear sector.

market impact

Uranium enrichment: Centrus secures its supply chain, a modest positive for LEU shares through expected synergies

tags

instruments