Team stock surges on Quest Integrity divestiture deal
Team (NYSE:TISI) shares gained 81% pre-market on Monday after the firm announced a deal to sell its Quest Integrity business to Baker Hughes (NASDAQ:BKR) for $280M cash.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in the fourth quarter of 2022.
The divestiture is a key step in realizing the companyâs strategic initiative to refocus on its core businesses and improve profitability and cash flow.
Quest Integrity provides advanced inspection and engineering assessment services and products for the pipeline, refining, chemical and power industries. The business reported ~$59M in revenues through the six months ended June 30, 2022.
The sale will enable Team (TISI) to focus on its core Inspection & Heat Treating and Mechanical Services businesses that represented over 87% of its consolidated revenues year to date through June 30, 2022. It will also allow the firm to make a substantial debt pay down and improve liquidity. 
Team's interim CEO Keith Tucker: "This sale is an important step in our transformation plan and going forward, we are excited about the prospects for our business as we work to implement targeted growth and business improvements in order to drive improved profitability."