Houston, TX, Dec. 11, 2012 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ:ENG), a leading provider of energy-related engineering andautomation services, announced today that it has reached anagreement on terms under which ENGlobal's Midstream Inspectiondivision will be divested to Furmanite America, Inc. ("FAI") asubsidiary of Furmanite Corporation. The total value of thetransaction to ENGlobal is expected to be approximately $6.5million, 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 fromthis transaction to reduce outstanding debt. The transactionis expected to close at year-end, subject to lender approval andthe completion of customary conditions. "Once closed, this sale ensures that 100% ofmanagement's attention can be applied to ENGlobal's Engineering andAutomation segments," said William A. Coskey, P.E., Founder,Chairman and Chief Executive Officer. "Since August, ENGlobal hasbeen focused on divesting our Field Solutions segment, leadingimprovement initiatives, and implementing an organizationalrestructuring that has resulted in a more efficient company." ENGlobal announced its plan to exploredivestiture options of its Field Solutions segment, which includedboth its Land/Right of Way and Midstream Inspection divisions, inSeptember 2012. The Company will complete the divestiturewithin both the timeline and the estimated value attributed to thesegment by ENGlobal. About ENGlobal ENGlobal (NASDAQ: ENG), founded in 1985, is aprovider of engineering and related project services principally tothe energy sector throughout the United States and internationally.ENGlobal operates through two business segments: Automation andEngineering & Construction. ENGlobal's Automation segmentprovides services related to the design, fabrication &implementation of process distributed control and analyzer systems,advanced automation, and related information technology. TheEngineering & Construction segment provides consulting servicesrelating to the development, management and execution of projectsrequiring professional engineering as well as downstreaminspection, construction management, mechanical integrity, fieldsupport, quality assurance and plant asset management. ENGlobal has approximately 1,500 employees in 12 officesand 9 cities. Further information about the Company and itsbusinesses is available at www.ENGlobal.com. Safe Harbor for Forward-Looking Statements The statements above regarding the Company'sexpectations regarding its operations and certain other mattersdiscussed in this press release may constitute forward-lookingstatements within the meaning of the federal securities laws andare subject to risks and uncertainties including, but not limitedto: (1) our ability to realize the benefits of the sale of theInspection division, including our ability to collect unbilledtrade receivables; (2) whether the exploration andconsideration of strategic alternatives will result in anytransaction and such transaction's effects on the Company and itsstockholders; (3) our ability to comply with the terms of theforbearance agreement with respect to the Company's RevolvingCredit and Security Agreement, including our ability to develop aplan to restore compliance with the terms of such credit facility;(4) our ability to obtain the cure or waiver of defaults underthe Company's Revolving Credit and Security Agreement and ourexisting letter of credit facility with Export-Import Bank of theUnited States; (5) our ability to achieve profitability andpositive cash flow from operations; (6) our ability to collectaccounts receivable and process accounts payable in a timelymanner; (7) our ability to respond appropriately to thecurrent worldwide economic situation and the resulting decrease indemand for our services and competitive pricing pressure;(8) our ability to achieve our business strategy whileeffectively managing costs and expenses; (9) our ability toaccurately estimate costs and fees on fixed-price contracts;(10) the effect of changes in the price of oil;(11) delays related to the award of domestic and internationalcontracts; (12) our ability to execute to our internalperformance plans such as our productivity improvement and costreduction initiatives; (13) the effect of changes in laws andregulations with which the Company must comply and the associatedcosts of compliance with such laws and regulations, eithercurrently or in the future, as applicable; (14) the effect ofchanges in accounting policies and practices as may be adopted byregulatory agencies, as well as by the FASB; (15) the effecton our competitive position within our market area in view of,among other things, increasing consolidation currently taking placeamong our competitors; (16) our ability to win new businessand convert those orders to sales within the fiscal year inaccordance with our annual business plan; (17) achievement ofour acquisition and related integration plans; and (18) theuncertainties of the outcome of litigation. Actual results and thetiming of certain events could differ materially from thoseprojected in or contemplated by the forward-looking statements dueto a number of factors detailed from time to time in ENGlobal'sfilings with the Securities and Exchange Commission. In addition,reference is hereby made to cautionary statements set forth in theCompany's most recent reports on Form 10-K and 10-Q, and other SECfilings. Click here to join our email list: http://www.b2i.us/irpass.asp?BzID=702&to=ea&s=0.
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