Philip Services Sells Business Groups

Philip Services Corp. has sold five of the Project Services Division business groups to Fluor Corp., a provider of engineering, procurement, construction and maintenance services.

PSC sold Mechanical & Turnaround Services, Electrical & Instrumentation Contracting, Power Services (excluding the group that provides industrial cleaning and boiler improvement for power plants), Specialty Welding Services and Fabrication Services. These business groups operate in more than 100 locations throughout North America.

The sale of these five business groups moves PSC forward in the business strategy adopted in 2002 that integrated its core competencies of industrial cleaning and environmental services into a single operating division, PSC Industrial Services.

"Responding to our clients' objectives to reduce their costs and to increase their focus on core businesses, PSC is executing a business strategy that leverages our strong industry experience and provides a broad array of safe and cost-effective services delivered by experienced professionals," said Robert Knauss, chairman and principal executive officer of PSC. "PSD had sound business groups, but was difficult to fit into our existing infrastructure. We expect the sale to result in a more consistent and predictable cash flow model, improve our operational efficiency and asset management, and strengthen and improve our balance sheet."

PSC is retaining Catalyst Services and All Safety, integrating these former PSD business groups into Industrial Services. PSC will continue seeking a buyer for PSD's Refractory Services and Union Mechanical and Turnaround Operations.