Team, Inc. Announces Sale of Quest Integrity Business
August 15 2022 - 8:00AM
Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”),
a global leading provider of integrated, digitally-enabled asset
performance assurance and optimization solutions, today announced
it has reached an agreement to sell its Quest Integrity business to
Baker Hughes, an energy technology company that provides solutions
to energy and industrial customers worldwide, for $280 million cash
(before any customary post-closing adjustments). The divestiture is
a key step in realizing the Company’s strategic initiative to
refocus on its core businesses and improve profitability and cash
flow.
In late 2021, TEAM announced a plan to review
strategic options in order to maximize shareholder value. As a
result of the Company’s ongoing portfolio review to streamline its
operations and unlock value, the Company has agreed to sell its
Quest Integrity business, which constitutes Team’s advanced
inspection and engineering operations and reliability management
business segment. The sale is expected to close in the fourth
quarter of 2022, subject to customary closing conditions and
regulatory approvals. This sale allows TEAM to make a substantial
debt pay down, improves liquidity and importantly, allows the
Company to focus on its core Inspection & Heat Treating and
Mechanical Services businesses that represented over 87% of its
consolidated revenues year to date through June 30, 2022.
“After a thorough assessment of the portfolio,
our Board of Directors determined that selling Quest Integrity
would be a key step in our plan to strengthen our balance sheet and
is in the best interests of our shareholders.” said Keith Tucker,
TEAM’s Interim Chief Executive Officer. “The Quest Integrity
transition is expected to be seamless for our customers and
employees while maintaining our commitment to meet our customers'
support needs with the high standards of safety and quality that
both Team and Baker Hughes are known to deliver. This sale is an
important step in our transformation plan and going forward, we are
excited about the prospects for our business as we work to
implement targeted growth and business improvements in order to
drive improved profitability.”
Quest Integrity provides technology-enabled,
advanced inspection and engineering assessment services and
products that help organizations in the pipeline, refining,
chemical and power industries improve operational planning,
increase profitability, and reduce operational and safety risks.
The Quest Integrity business generated over $80 million in revenues
in 2021 and reported approximately $59 million in revenues through
the six months ended June 30, 2022.
Robert W. Baird & Co served as the exclusive
financial advisor to TEAM on the transaction. Kirkland & Ellis
LLP served as TEAM’s legal counsel.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc.
is a global leading provider of integrated, digitally-enabled asset
performance assurance and optimization solutions. We deploy
conventional to highly specialized inspection, condition
assessment, maintenance and repair services that result in greater
safety, reliability, and operational efficiency for our client’s
most critical assets. Through locations in more than 20 countries,
we unite the delivery of technological innovation with over a
century of progressive, yet proven integrity and reliability
management expertise to fuel a better tomorrow. For more
information, please visit www.teaminc.com.
Certain forward-looking information contained
herein is being provided in accordance with the provisions of the
Private Securities Litigation Reform Act of 1995. We have made
reasonable efforts to ensure that the information, assumptions, and
beliefs upon which this forward-looking information is based are
current, reasonable, and complete. However, such forward-looking
statements involve estimates, assumptions, judgments, and
uncertainties. Many factors could cause actual results or outcomes
to differ materially from those addressed in the forward-looking
information. Although it is not possible to identify all of these
factors, they include, among others, the Company's ability to hire
a new chief executive officer in the near future, if necessary; the
duration and magnitude of accidents, extreme weather, natural
disasters, and pandemics (such as COVID-19) and related economic
effects, the Company’s liquidity and ability to obtain additional
financing; the Company’s ability to execute on its cost management
actions, the impact of new or changes to existing governmental laws
and regulations and their application, including tariffs and
COVID-19 vaccination requirements; the outcome of tax examinations,
changes in tax laws, and other tax matters; foreign currency
exchange rate and interest rate fluctuations; the Company’s ability
to successfully divest assets on terms that are favorable to the
Company; our ability to repay, refinance or restructure our debt
and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; and such known factors as
are detailed in the Company’s Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, each as filed
with the Securities and Exchange Commission, and in other reports
filed by the Company with the Securities and Exchange Commission
from time to time. Accordingly, there can be no assurance that the
forward-looking information contained herein, including statement
regarding the Company’s financial prospects and the implementation
of cost saving measures, will occur or that objectives will be
achieved. We assume no obligation to publicly update or revise any
forward-looking statements made today or any other forward-looking
statements made by the Company, whether as a result of new
information, future events or otherwise, except as may be required
by law.
Contact:
Christopher Robinson, CFAVice President,
Corporate Development & Investor Relations(281) 388-5551
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