NUKEM Limited, New Brand, More investment and growth

Submitted by Kenneth A J Nicol

13th August 2006

In Germany on 8 August the sale of RWE Solutions to the global private equity group Advent International was completed. The deal is effective from 1 April 2006 and includes all the NUKEM Group's international activities. The Group is well established in the global nuclear services industry and enjoys an international reputation. It holds leading positions in the UK, USA, Germany and Eastern European nuclear decommissioning and waste management markets, and is the world's largest independent uranium trader.

Here in the UK, RWE NUKEM Limited has been formally re-registered as NUKEM Limited and will trade under this name with immediate effect.

NUKEM is one of the largest private employers in Caithness with a workforce of over 230 staff based at Dounreay. Many of the staff have followed the footsteps of their forebears: firstly in supporting UKAEA's nuclear research & development programme and now the site's decommissioning activities.

Commenting on the sale of the Company and its impact, NUKEM's Dounreay Head of Site, Alan Gerrard, said,

"Our new shareholders Advent International are an enthusiastic and successful team and their only interest is in making all the NUKEM Group companies even more successful. They certainly believe in the future of the nuclear market here in the UK and particularly at Dounreay. We will get positive support for initiatives from our new owners.
At Dounreay we have a very successful apprenticeship scheme as well as being an Approved Centre for the assessment of SNVQs in Decommissioning. We provide the majority of radiation safety services to UKAEA at site and our operational staff, consultants and nuclear designers are not only some of the best and most highly skilled in the country, they have a depth of knowledge about Dounreay that is hard to match. Indeed some of our operational staff at PFR have worked in the facility since it was first built providing unique knowledge and experience. In fact the experience that we have from working at Dounreay has proved to be valuable around the world. Many of our staff are called upon for their particular knowledge of sodium for example, and we support an international programme in Kazahkstan on the decommissioning of the BN350 reactor. We are in demand for projects from the US to Australia and we also provide international expertise to the IAEA on training in Decommissioning skills. Working at Dounreay and working with NUKEM provides significant opportunities and considerable benefits to the international nuclear market.

Away from the site we dedicate a considerable amount of resources to local community issues: we are involved in education and training with the North Highland College and the local schools; we fund the coaching grant of the Caithness Sports Council and provide significant local sponsorship. As a committed local Company, NUKEM is determined to expand its workforce in support of the NDA's decommissioning programmes and continue to provide a significant contribution to the area."

Managing Director Dr Michael Down said, "We are delighted that the sale has now been completed and anticipate working closely with our new shareholder. Advent is determined to focus on the individual strengths of each of the acquired businesses. In particular we plan to build on the NUKEM Group's position as an international leader in nuclear engineering and decommissioning services. We are all looking forward to working in this new environment."

UK based NUKEM Limited is a member of the international NUKEM Group with nearly 1000 staff based at major offices in Risley, Cheshire; Dounreay, Caithness; Harwell, Oxfordshire; Sellafield and Westlakes, Cumbria; and Winfrith in Dorset. The Company has a turnover in excess of ~€90 million and provides an extensive range of nuclear services from consulting contracts to turnkey design and build.

NUKEM possesses a comprehensive set of internationally recognised nuclear technologies enabling the Company to respond to the most challenging tasks within the nuclear industry.

Advent International is one of the world's leading private equity firms, with €4.8 billion in cumulative capital raised and offices in 14 countries across Western and Central Europe, North America, Latin America and Asia Pacific. Since its founding in 1984, Advent has invested in over 500 companies and has helped businesses raise €8 billion through public equity and debt offerings.