Sumitomo Heavy Industries has completed the acquisition of circulating fluidised bed (CFB) boiler business from Amec Foster Wheeler for around $170m.
Amec, which has divested the assets as part its transformation program, will used the proceeds from the deal to reduce net debt.
The CFB boiler business is said to be the largest part of its Global Power Group (GPG), while the remaining GPG steam generator businesses comprised of heat recovery steam generator and industrial boilers businesses.
Amec is also planning to divest the remaining businesses by the end of this year.
Originally part of GPG, the North American aftermarket services business is being held and has been operating as part of Amec’s power and process business.
Amec CEO Jon Lewis has launched transformation program following a company-wide review.
The core components of the transformation program include implementation of new leaner operating model for projects and customers, delivering cost efficiencies across the business, refresh the company strategy and divesting non-core assets.
Amec also completed the divestment of multiple smaller assets, in addition to the sale of CFB boiler business.
Amec Foster Wheeler CEO Jon Lewis said: “We have made significant progress with the company wide transformation programme that we launched last year.
“The completion of the sale of the CFB boiler business is a milestone in this programme. We are continuing to implement the programme enabling us to better serve our customers and strengthen the company's balance sheet.”
With operations in around 55 countries, Amec provides full life-cycle services to offshore and onshore oil and gas projects, including conventional and unconventional, upstream, midstream and downstream.