Sugar Land, Texas, November 1, 2022 (Globe Newswire) – Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a leading global provider of integrated and digitally enabled asset performance assurance and optimization solutions, today announced the closing of the previously disclosed sale of its Quest Integrity business to Baker Hughes, an energy technology company that provides solutions for energy and industrial customers. Worldwide, at about $279 million, reflecting some estimated post-close adjustments. The company’s net revenue (after payment of transaction related expenses and certain other fees) will be approximately $270 million. The Company intends to use approximately $238 million of the proceeds to pay off term debts and pay certain fees associated with that repayment and related accrued interest, with the remainder held for general corporate purposes.
Keith Tucker, interim CEO of TEAM, said: “We are pleased to close the Quest Integrity transaction, which represents an important step in our plan to refocus TEAM on core screening, heat treatment and mechanical services businesses. The cash proceeds provide significant debt repayment which significantly strengthens our balance sheet and improves our resilience. Finance as we continue to implement our strategic initiatives designed to improve profitability and cash flow.Looking forward, we are seeing higher levels of activity in our core businesses and remain excited about TEAM’s prospects for the future, particularly as operational and strategic changes begin to positively impact results.We expect further improvements As our business plan accelerates, we have increased confidence in our ability to enhance shareholder value.”
Robert W. Baird & Co acted as TEAM’s exclusive financial advisor on the transaction. Kirkland & Ellis LLP served as legal counsel for TEAM.
About Team, Inc.
Team, Inc. is headquartered. in Sugar Land, Texas, a leading global provider of integrated and digitally enabled asset performance assurance and optimization solutions. We deploy traditional to highly specialized inspection services, condition assessment, maintenance and repair that result in greater safety, reliability and operational efficiency for our customers’ most critical assets. With locations in more than 20 countries, we unite the delivery of technological innovation with more than a century of progressive management experience with integrity and reliability to fuel a better tomorrow. For more information, please visit www.teaminc.com.
Certain of the forward-looking information contained herein is provided pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. We have used reasonable efforts to ensure that the information, assumptions and beliefs on which such forward-looking information is based are current, reasonable and complete. However, such forward-looking statements involve estimates, assumptions, judgments and uncertainties. Many factors could cause actual results or results to differ materially from those addressed in the forward-looking information. Although not all of these factors can be identified, they include, among others, the company’s ability to appoint a new CEO in the near future, if necessary; the duration and extent of accidents, severe weather, natural disasters, epidemics (such as COVID-19), related economic impacts, and the company’s liquidity and ability to obtain additional financing; The Company’s ability to implement cost management procedures, and the impact and application of new or changes to existing governmental laws and regulations, including tariffs and COVID-19 vaccination requirements; the result of tax examinations, changes in tax laws and other tax matters; fluctuations in foreign exchange rates and interest rates; The ability of the company to successfully sell assets on favorable terms for the company; The ability of the company to repay, refinance or restructure its debts and the debts of some of its subsidiaries; Anticipated or anticipated purchases or sales of assets; Known factors as detailed in the company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, each filed with the Securities and Exchange Commission, and in other reports filed by the company with the Securities Commission Finance and stock exchanges from time to time. Accordingly, there can be no assurance that the forward-looking information contained herein, including statements regarding the Company’s financial prospects and implementation of cost-saving measures, will occur or the objectives will be achieved. We are under no obligation to update or revise any forward-looking statements made today or any other forward-looking statements made by the Company, whether as a result of new information, future events or otherwise, except as may be required by law.
Senior Vice President and Chief Financial Officer