ENGlobal Corporation: Closes the Midstream Deal

ENGlobal Completes Divestiture of Midstream Inspection Division

Houston, TX, Jan. 3, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it has closed the previously announced agreement to divest its Midstream Inspection division to Furmanite America, Inc. ("FAI") a subsidiary of Furmanite Corporation.  As announced in December 2012, the total value of the transaction to ENGlobal was approximately $6.5 million, consisting of cash at closing, retained working capital, and a promissory note issued with a parent company guarantee.
ENGlobal intends to use the net proceeds from this transaction to reduce outstanding debt.  The closing of this transaction completes ENGlobal's previously announced intent to divest its Field Solutions segment, which included both its Land/Right of Way and Midstream Inspection divisions, as a means of reducing outstanding bank indebtedness.

Opinion: Kind of a repeat but glad they got it closed.