ENGlobal Corporation: Previous Segment Sale Final, New Credit Facility

ENGlobal Finalizes Sale of Gulf Coast Operations
Enters Into New $10 Million Credit Facility

HOUSTON, Aug. 30, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today that it successfully completed the sale of its Gulf Coast engineering and in-plant operations to Furmanite America, Inc. ("FAI"), a subsidiary of Furmanite Corporation (NYSE:FRM) ("Furmanite"). The total consideration of the transaction to ENGlobal was approximately $20 million, consisting primarily of cash funded at closing. The Company will use the cash proceeds from the transaction to repay its outstanding debt under its existing credit facility and for working capital purposes. Further terms of the transaction were not disclosed.

ENGlobal will retain its Engineering operations and the entirety of its Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver, CO, and Chicago, IL, which perform project execution services primarily to the energy industry. The Company previously announced that it intended to concentrate on its core Engineering and Automation segments in these markets and target specific engineered solutions, utilizing both in-house and third party intellectual property.

ENGlobal also announced that it has entered into a one year, $10 million credit facility with its lender, which will be used for working capital purposes, as needed, and will allow the Company additional time to analyze its long-term capital needs. 

"The completion of this transaction with Furmanite is a significant milestone for ENGlobal," said Mr. William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "Now, as a stronger company, we plan to return our attention to strategic growth. I would like to personally thank all of our employees, especially those in our Gulf Coast operations, for their patience throughout this process and commend the transition team for their efforts."

Mr. Coskey, continued. "I have great respect for Furmanite's management team and have no doubt that our Gulf Coast employees are in good hands. We look forward to working with Furmanite on future projects."