Babcock & Wilcox signed a definitive agreement to acquire Spig S.p.A., an Arona, Italy-based provider of custom-engineered cooling systems and services.

Spig, which will operate as a subsidiary of B&W under the trade name of Babcock & Wilcox Spig, supplies dry and wet cooling solutions and aftermarket services to the power generation, downstream oil and gas, petrochemical and other industrial end markets. Its products include air-cooled (dry-cooling) systems, mechanical-draft wet-cooling towers and natural-draft wet-cooling hyperbolic towers.

The deal is expected to be completed during the third quarter of 2016.