Cameco to buy uranium broker for US$136M
By Eric Lam
Saskatoon uranium producer Cameco Corp. said Monday it has agreed to purchase Nukem Energy GmbH, a broker of nuclear fuel products and services for US$136-million.
Cameco will also assume Nukem’s net debt position of US$164-million, although the company expects to substantially reduce its debt balance through ongoing business activities prior to closing.
The sale agreement with global private equity firm Advent International also includes provisions for Advent to receive a portion of Nukem’s future earnings until the end of 2014.
Nukem, with offices in Germany and Connecticut, will continue to operate as an independent company upon closing, expected in the fourth quarter of 2012.
“This acquisition complements Cameco’s business by strengthening our position in nuclear fuel markets and improving our access to unconventional and secondary sources of supply,” Tim Gitzel, chief executive with Cameco, said in a release. “After closing, it is expected that Nukem will add solid cash flow and will have a positive impact on earnings starting in 2013.”
Nukem sold 12 million pounds of uranium in 2011 and expects to sell between 10 million and 15 million pounds in 2012. The company’s assets also include uncommitted inventory and a portfolio of purchase and sales contracts.