EnergySolutions

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EnergySolutions is one of the world’s largest processors of low level waste (LLW), and is the largest nuclear waste company in the United States. EnergySolutions is a publicly traded company Nasdaq: ES) based in Salt Lake City, Utah, although it has operations in 40 states. Steve Creamer is the founder and current CEO of the company, which formed from the merger of four waste disposal companies: Envirocare, Scientech D&D, BNG America, and Duratek. The company with no experience as a nuclear power generator took over several Magnox atomic plants from British Nuclear Fuels plc in United Kingdom on June 7, 2007.[1]

EnergySolutions owns two landfills to dispose radioactive waste—in Tooele County, Utah and Barnwell County, South Carolina. The company also possesses technology to convert waste into environmentally safe forms, such as durable glass, and is contracted by the United States Department of Energy to assist in waste conversion efforts.

The company holds the naming rights to EnergySolutions Arena.

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[edit] Creation of EnergySolutions

Envirocare of Utah purchased the Connecticut-based Scientech D&D division in October 2005.[2] On February 2, 2006, Envirocare announced the $90 million purchase of BNG America a subsidiary of British Nuclear Fuels (BNFL) based in Virginia.[3] The merged company would change its name to EnergySolutions, with corporate headquarters based in Salt Lake City, Utah. On February 7, 2006, EnergySolutions announced it would buy Maryland-based Duratek, a publically-traded company, for $396 million in an all-cash deal.[4] The leveraged buyout was financed by banks led by Citigroup, effectively taking the company private.

After the acquisitions, EnergySolutions has 2,500 employees in 40 states with an annual revenue of $280 million.[5] Additionally, EnergySolutions owns two of the nation's three commercial low-level nuclear-waste repositories, although its primary competitor, Waste Control Specialists, hopes to build a fourth repository in Texas.

[edit] Envirocare

Envirocare was founded by Iranian immigrant Khosrow Semnani in 1988. Semnani served as president of the company until May 1997, when Envirocare's largest customer—the Department of Energy—requested that he step down in the wake of a bribery scandal.[6] Semnani allegedly bribed Utah's Division of Radiation Control director, Larry B. Anderson, with $600,000 in cash, gifts, and gold coins over several years. Semnani alleged that he was extorted by Anderson, and the two sued each other in civil court. Semnani agreed to testify against Anderson in a plea bargain forcing him to pay a $100,000 fine for aiding in the preparation of a false tax return.[7] Anderson was convicted to serve 30 months in federal prison on tax charges.

In mid-December 2004, Semnani sold Envirocare for an undisclosed sum. Steve Creamer became the company's new CEO. The deal was financed by private equity firms, led by Lindsay Goldberg & Bessemer of New York, Creamer Investments, and Peterson Partners both of Salt Lake City. Envirocare management promised to drop plans to bury hotter class B and C nuclear waste in Utah in deference to developing political opposition to the company, which was poised to ban the waste anyway.[8] Envirocare's management and ownership was retained as it made the acquisitions to become EnergySolutions.

[edit] Duratek

Based in Columbia, Maryland, Duratek was founded in 1983. In 1990, the company merged with General Technical Services (GTS); the resulting company was known as GTS Duratek[9]. That year, the company formed a joint venture with another firm — Chem-Nuclear Systems, Inc. — to build a commercial vitrification system.

In 1997, GTS Duratek acquired the Scientific Ecology Group (SEG). In 2000, the company purchased the nuclear services business arm of Waste Management Inc.[10] One year later, the company announced that it was dropping GTS from its name, and was once again known as Duratek.

Duratek was purchased by EnergySolutions at 25.7% premium over the February 7, 2006 stock price when the merger was announced.[4]

[edit] References

  1. ^ Macalister, Terry. "Salt Lake City firm takes over UK nuclear sites", Guardian Unlimited, 2007-06-07. 
  2. ^ Bauman, Joe. "Envirocare adds nuclear waste firm", Deseret Morning News, 2006-02-03. 
  3. ^ Jameson, Angela. "BNFL sells American nuclear business for $90m", The Times, 2006-02-03. 
  4. ^ a b Bauman, Joe. "EnergySolutions OKs deal to buy Duratek", Deseret Morning News, 2006-02-08. 
  5. ^ Mims, Bob. "EnergySolutions expands", Salt Lake Tribune, 2006-06-07. 
  6. ^ Woolf, Jim. "Envirocare President Steps Down for Now", Salt Lake Tribune, 1997-05-15. 
  7. ^ Fahys, Judy. "Semnani Fined on Tax Crime; Envirocare owner must pay $100,000, but will serve no time in prison", Salt Lake Tribune, 1998-12-16. 
  8. ^ Bauman, Joe. "Utah to ban B and C nuclear waste", Deseret Morning News, 2005-02-02. 
  9. ^ GTS Duratek Announces Name Change to Duratek
  10. ^ GTS DURATEK TO BUY WASTE MANAGEMENT'S NUCLEAR UNIT story on 2000 purchase of WM services in the New York Times

[edit] External links