Team, Inc. Completes Sale of Quest Integrity Business

Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global leading provider of integrated, digitally-enabled asset performance assurance and optimization solutions, announced today the closing of the previously disclosed sale of its Quest Integrity business to Baker Hughes, an energy technology company that provides solutions to energy and industrial customers worldwide, for approximately $279 million, reflecting certain estimated post-closing adjustments. The net proceeds to the Company (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 down term debt and to pay certain fees associated with that repayment and related accrued interest, with the remainder reserved for general corporate purposes.

Keith Tucker, TEAM’s Interim Chief Executive Officer, stated, “We are pleased to close the Quest Integrity transaction, which represents an important step in our plan to refocus TEAM on its core Inspection and Heat Treating and Mechanical Services businesses. The cash proceeds provide for a substantial debt paydown that significantly strengthens our balance sheet and improves our financial flexibility while we continue to execute on our strategic initiatives designed to improve profitability and cash flow. Looking ahead, we are experiencing higher activity levels 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 action plan accelerates, giving us increased confidence in our ability to enhance shareholder value.”

Robert W. Baird & Co served as the exclusive financial advisor to TEAM on the transaction. Kirkland & Ellis LLP served as TEAM’s legal counsel.

 

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