Cameco to buy nuclear fuel broker Nukem Energy

Uranium miner Cameco Corp. said on Monday that it will pay $136 million US to acquire nuclear fuel broker Nukem Energy GmbH from private equity firm Advent International.

Cameco will also assume Nukem's net debt of $164 million, though cash generated from ongoing activities is expected to reduce that balance before closing.

"This acquisition complements Cameco's business by strengthening our position in nuclear fuel markets and improving our access to unconventional and secondary sources of supply," said Cameco chief executive Tim Gitzel in a statement.

With more than 50 years in the nuclear industry, Nukem has strong relationships with customers and suppliers, Cameco said. The acquisition is expected to have a positive impact on Cameco's earnings starting in 2013.

After closing, Nukem will continue to operate as an independent company. The deal includes provisions to provide Advent with a share of Nukem's earnings until the end of 2014.