WALTHAM, Mass., July 2, 2001 Thermo Electron Corporation announced today that it has completed the sale of a vast majority of the assets of its wholly owned Thermo Ecotek power-generation business to Arlington, Virginia-based AES Corporation for approximately $238 million.
This amount includes a $63 million purchase price adjustment for reimbursement of continuing project development expenditures incurred by Thermo Ecotek between September 30, 2000, and the June 29, 2001, closing date.
"The sale was structured in two phases, with this initial phase representing by far the bulk of the assets being sold," said Richard F. Syron, chairman and chief executive officer of Thermo Electron. "This transaction does not include three of Thermo Ecotek's power plants in California: Riverside, Delano, and the existing Mountainview facility. The sale of those assets remains subject to federal antitrust review. We believe the California plants will yield additional value to Thermo of approximately $20 million.
"This agreement is one of more than 40 divestitures Thermo has completed in the past 17 months, generating approximately a billion-and-a-half dollars in after-tax proceeds that we can reinvest in new growth opportunities we've identified now that we are a focused instruments company."
The AES Corporation is the world's largest global power company. AES generates and distributes electricity and is also a retail marketer of heat and electricity.
Thermo Electron Corporation is a global leader in providing technology- based instruments, components, and systems that offer total solutions for markets ranging from life sciences to telecommunications to food, drug, and beverage production. The company's powerful technologies help researchers sift through data to make discoveries that will fight disease or prolong life.
They allow manufacturers to fabricate ever-smaller components required to increase the speed and quality of communications. And they automatically monitor and control online production to ensure that critical quality standards are met safely and efficiently. Thermo Electron, based in Waltham, Massachusetts, reported $2.3 billion in revenues in 2000 and employed approximately 13,000 people worldwide. For more information on Thermo Electron, visit http://www.thermo.com.