ENGlobal to sell Midstream Inspection Division to Furmanite for about $6.5M

ENGlobal Corporation (ENG) announced that it has reached an agreement on terms under which ENGlobal's Midstream Inspection division will be divested to Furmanite America, a subsidiary of Furmanite Corporation (FRM). The total value of the transaction to ENGlobal is expected to be approximately $6.5M, 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 transaction is expected to close at year-end, subject to lender approval and the completion of customary conditions.