Furmanite Enters into Definitive Agreement to Sell FTS Division

Furmanite Corporation FRM ("Furmanite" or "the Company") today announced that it has entered into a definitive agreement under which Burrow Global, LLC ("Burrow Global") will acquire substantially all of the assets of the Company's Furmanite Technical Solutions ("FTS") division of its Engineering and Project Solutions operating segment for a purchase price, consisting of cash and debt, of $1.6 million plus estimated net working capital of approximately $12.8 million, and the assumption of certain related liabilities. Furmanite expects to incur a pre-tax loss of less than $1 million as a result of the sale transaction. The transaction is expected to close on September 28, 2015, subject to the satisfaction of all conditions to closing. Jeffery Davis, Interim Executive Chairman of Furmanite, said, "The sale of FTS will allow the Company to focus on its higher margin specialty services and is intended to further our strategy to drive shareholder value. Following completion of the transaction, the Company expects to deliver substantially higher operating margins while releasing a significant amount of cash due to a reduction in working capital needs." Included in the sale are Furmanite's Beaumont, Texas; Baton Rouge, Louisiana; Lake Charles, Louisiana; Deer Park, Texas; and Freeport, Texas offices, which primarily perform in-office and in-plant engineering work for downstream clients in the Gulf Coast region. Burrow Global will also assume Furmanite's obligations under the real estate leases and contracts utilized by the FTS operations. Furmanite will retain the process management inspection component of its Engineering & Project Solutions segment, which is based in Tulsa, Oklahoma. Furmanite will provide limited transition services to the FTS business for a period following the closing. Additional terms of the transaction are disclosed on Form 8-K as filed with the Securities and Exchange Commission. On May 6, 2015, Furmanite announced that it had retained Lazard Freres & Co. as financial advisors to assist in an evaluation of strategic alternatives. As previously stated, Furmanite does not intend to provide updates on the evaluation or negotiation process until a definitive agreement has been reached or discussions and/or negotiations have terminated.