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ENSERCH SIGNS AGREEMENT TO SELL EBASCO'S PRINCIPAL OPERATING ASSETS TO RAYTHEON ENGINEERS & CONSTRUCTORS

 DALLAS, Nov. 17 /PRNewswire/ -- ENSERCH Corporation (NYSE: ENS) has finalized an agreement whereby the principal operating assets of its engineering and construction subsidiary, Ebasco Services Incorporated, and its subsidiaries, including Ebasco Constructors Inc., will be sold to Raytheon Engineers & Constructors, a subsidiary of Raytheon Company (NYSE: RTN). Closing, which is subject to Hart-Scott-Rodino clearance, is anticipated before year end.
 Details of the transaction include:
 -- Engineering and construction assets to be sold, which include the ongoing operations and goodwill in Ebasco's energy, infrastructure and quality-engineering services businesses, are being conveyed to Raytheon Engineers & Constructors for $210 million, plus adjustments to closing.
 -- ENSERCH will retain the bulk of the accounts receivable having a net book value as of June 30, 1993, of $135 million. Certain of the receivables are subject to claims, retention and litigation.
 -- ENSERCH will retain and operate Ebasco's Environmental Division, which has a book value approximating $29 million. For the nine months ended Sept. 30, 1993, revenues of the division were $94.5 million and earnings before interest and income taxes were $4.3 million.
 "Completion of the disposition of our engineering and construction business will be a major step forward permitting ENSERCH to focus on its integrated natural-gas business," said David W. Biegler, ENSERCH chairman, president and chief executive officer. "Cash proceeds at closing and the collection of receivables will provide a significant cash infusion that will be directed toward our goal of a strengthened balance sheet. The structure of the transaction enables us to accomplish these objectives while maximizing the proceeds from the assets being sold."
 ENSERCH announced last February the proposed sale of Ebasco along with several other strategic moves so that the corporation could focus on serving the growing natural-gas market from wellhead to end use.
 ENSERCH Corporation is a Dallas-based integrated natural-gas company.
 -0- 11/17/93
 /NOTE TO EDITORS: Correct style is ENSERCH Corporation./
 /CONTACT: Benjamin A. Brown, vice president, financial relations, (analysts) 214-670-2204, or Crystal C. Bell, director, financial communications, 214-670-2528, both of ENSERCH Corporation/
 (ENS RTN)


CO: ENSERCH Corporation; Raytheon Engineers & Constructors ST: Texas IN: OIL CST SU: TNM

CK -- NY082 -- 5573 11/17/93 14:33 EST
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Publication:PR Newswire
Date:Nov 17, 1993
Words:357
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