Babcock & Wilcox Enterprises Inc. has sold its Straubing, Bavaria, Germany-based material handling subsidiary, Babcock & Wilcox Loibl GmbH, to a subsidiary of Deutsche Invest Mittelstand GmbH.

“The proceeds from B&W’s sale of Loibl will be used to reduce debt, provide working capital and strengthen the company’s liquidity and overall financial position, as well as help us focus on our core businesses,” B&W CEO Kenneth Young said.

B&W remains focused on its path to profitability and will continue to strategically focus on its core products and services for power and industrial markets and its strong aftermarket services and retrofit businesses, while driving savings through cost-reduction and efficiency improvements.

ACXIT Capital Partners, headquartered in Frankfurt, Germany, served as B&W’s M&A adviser on the transaction.