Thermo Electron to sell power-generation business to AES

WALTHAM, Mass., Feb. 13, 2001 (PRNewswire) — Thermo Electron Corporation (NYSE: TMO – news) announced today that it has signed a definitive agreement to sell the assets of its wholly owned Thermo Ecotek power-generation business to Arlington, Virginia-based AES Corporation for $195 million in cash, plus a closing adjustment for continuing project development expenditures incurred between September 30, 2000, and the closing date.

These adjustments are expected to add a minimum of $15 million to the purchase price.

“We have now checked off one of the final items on our divestiture list, making us essentially a pure instruments company,” said Richard F. Syron, chairman and chief executive officer of Thermo Electron. “Our goal all along in this process has been to maximize shareholder value, and this agreement does just that. I’m very pleased to report that, with this transaction, we have generated nearly $1.2 billion in after-tax proceeds from our divestiture program to date, not including that which we expect to generate from our planned sale of Thermo Cardiosystems.”

Thermo Electron will treat the independent power-generation business as a discontinued operation. As such, Thermo Ecotek’s results for 2000 and prior periods will be excluded from the company’s results from continuing operations when Thermo Electron reports earnings on February 21, 2001. Thermo Ecotek contributed $.03 and $.02 of diluted cash operating earnings per share in the fourth quarter of 2000 and 1999, respectively; and $.08 and $.10 for the full- year 2000 and 1999, respectively. (These results are from continuing operations and exclude unusual charges or income and amortization of goodwill and other intangibles, as well as any effect of Staff Accounting Bulletin No.101.)

The transaction is subject to a number of closing conditions, including anti-trust and other state and federal regulatory approvals, as well as customary conditions. The transactions will be structured in two phases, the first of which is expected to close in the second quarter of this year. The second phase will likely close during the third quarter. JP Morgan acted as financial advisor to Thermo Electron in this transaction.

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 leading provider of analytical and monitoring instruments used in a broad range of applications, from life sciences research to telecommunications to food, drug, and beverage production. In addition, Thermo Electron serves the healthcare market through a family of medical companies, and is a major producer of paper recycling systems and provides fiber-recovery products.

As announced on January 31, 2000, the company has initiated a major reorganization that would transform it into one publicly traded entity focused on its core instruments business. The company’s medical products and paper recycling businesses will be spun off as dividends to Thermo Electron shareholders. More information is available at http://www.thermo.com.

SOURCE: Thermo Electron Corporation