BWXT to Sell Medical Business to Nordic Capital for Up to $800 Million

On August 3, BWX Technologies, Inc. announced that it has reached a definitive agreement to sell its medical business to healthcare investment company Nordic Capital. The transaction is valued at up to $800 million and includes BWXT Medical and the stable medical isotope business of Kinectrics.

BWXT stated that the divestiture will help the company concentrate resources and capital to drive growth in its core nuclear national security business and commercial nuclear power market operations. The company believes these areas are its long-term strategic priorities.

Under Nordic Capital's ownership, the medical business is expected to further expand its scale, enhance capabilities, and strengthen its market position in the radiopharmaceutical field. The business primarily involves the development, production, and delivery of products used in diagnostic imaging and radiation therapy.

BWXT also stated that it remains optimistic about the long-term growth prospects of the radiopharmaceutical market and will retain a substantial minority stake in the divested business. Under the agreement, BWXT will also continue to provide specialized isotope and radiochemistry technical support.

BWXT President and Chief Executive Officer Rex D. Geveden stated that since the acquisition of the medical business in 2018, its revenue has nearly tripled, profitability has improved significantly, and the product portfolio has expanded substantially, including new therapeutic isotopes. He noted that this transaction will enable the medical team to enter its next phase of development under a parent company more focused on the healthcare industry, while allowing BWXT to direct more management resources and capital toward its core nuclear security and nuclear power businesses.

Nordic Capital expressed confidence in the business's potential for expansion and in broadening the application scope of advanced radiopharmaceutical therapies. The company believes that its investment experience at the intersection of pharmaceuticals and life sciences, along with its recognition of the BWXT Medical team's capabilities, will lay the foundation for future collaboration.

The transaction remains subject to approval from relevant regulatory authorities and is expected to close by the end of 2026. Solomon Partners is serving as BWXT's exclusive financial advisor, with Stikeman Elliott acting as its legal counsel; Kirkland & Ellis LLP and McCarthy Tétrault are serving as Nordic Capital's legal counsel.