Company: BWNB
Filing Date: 2025-05-05
Form Type: 8-K
Source: 0001104659-25-044533
Chunk: 0

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-05-05
Form: 8-K
Item: Item 1.01
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Item 1.01
Entry into a Material Definitive Agreement

On April 29,
2025, Babcock & Wilcox A/S (“ BWAS”), a subsidiary of Babcock & Wilcox Enterprises, Inc. (the “ Company”),
sold a majority of its assets, including intellectual property, specific project contracts as well as related agreements with suppliers
and certain tangible assets, to Kanadevia Inova Denmark A/S (the “ Buyer”). The sale was comprised of a simultaneous transfer
of assets from BWAS to a newly incorporated BWAS subsidiary (the “ NewCo”) pursuant to a business transfer agreement (“ BTA”),
and sale of NewCo by BWAS to the Buyer pursuant to a share purchase agreement (the “ SPA” and together with the BTA, the “ Purchase
Agreements”).

The Purchase
Agreements provide for a base purchase price equal to $15 million plus 400,000 Danish krone, subject to certain offsets and adjustments,
including additional payments to BWAS if the Buyer enters into certain prospective project agreement within five years. In addition, BWAS
and the Buyer entered into an agreement under which Buyer loaned BWAS $5 million which will be considered repaid when BWAS transfers to
NewCo certain retained intellectual property usage rights. The Purchase Agreements also include representations
and warranties regarding BWAS and the transferred business and assets, as well as certain indemnities with respect thereto.

BWAS and the
Buyer entered into a transition services agreement under which BWAS and/or its affiliates will provide services to support the NewCo for
a temporary period. BWAS also entered into an intellectual property rights license agreement, a subcontractor agreement, and a legacy
contract services agreement in connection with the Purchase Agreements. In addition, the Company’s subsidiary, The Babcock &
Wilcox Company, entered into two memorandums of understanding with the Buyer related to future cooperation in connection with the sale.

The Company does
not have any material relationship with the Buyer other than in respect of the transaction.

Item 2.01
Completion of Acquisition or Disposition of Assets