Energy Solutions Acquired for $3.75 per Share

EnergySolutions

, a provider of services to owners and operators of nuclear power plants, today announced that it has entered into a definitive agreement to be acquired by a subsidiary of private equity firm Energy Capital Partners II, LLC in a transaction with an estimated enterprise value of $892 million. Under the terms of the agreement, EnergySolutions' shareholders will receive $3.75 in cash for each share of common stock, a total outlay of $338.5 million. Energy Capital, which says it has over $7 billion of capital commitments to firms in various areas of energy production and transmission, states that it plans to operate the company as a standalone business with the current management in place. EnergySolutions also said it intends to actively solicit offers from third parties through February 6, but will not disclose developments until their Board of Directors has made a decision. Shares jumped 12 percent at the open Monday, but had traded down to around $3.73. Volume had soared to nearly 8.6 million shares, which is more than nine times the stock's trailing three-month average daily volume of 938,620 shares. The buyout offer of $3.75 per share is just over the midpoint of the stock's trailing 52-week trading range of $1.43 to $5.43. EnergySolutions is unprofitable, reporting a loss of $2.10 per share over the trailing 12 months ended September 30, 2012. But despite a heavy load of debt ($814 million as of September 30, generating a debt/equity ratio of 261 percent), the company had positive operating cashflow of $83 million and $2.58 per share of cash on its balance sheet. Its niche in the nuclear decontamination and decommissioning business is well regarded by many observers.