CB&I To Sell Its Technology Business

Published: Aug 09 2017
Deal Summary

Chicago Bridge & Iron Company N.V. (CB&I), a provider of technology and infrastructure services to the energy industry, intends to sell its Technology business.

The Technology business provides proprietary process technology licenses and associated engineering services and catalysts and offers process planning, project development services and a comprehensive program of aftermarket support primarily for the petrochemical and refining industries.

The company intends to use the proceeds from the sale to enhance its financial strength and flexibility by eliminating the majority of its debt and reinvesting in its Engineering & Construction and Fabrication Services businesses.

Bank of America Merrill Lynch is acting as a financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to the company for the transaction.

The transaction is expected to be closed by December 27, 2017.

Patrick K. Mullen, president and CEO of CB&I, said, “Supported by more than 100 years of technology development, our Technology business is unique. With 3,000 patents and patent application trademarks and more than 100 licensed technologies, we are one of the largest providers of licensed process technologies in the world. This is a business that consistently generates very attractive margins with minimal capital requirements. Our intent is to negotiate a long-term strategic alliance with the ultimate buyer, which we believe could benefit both CB&I and the buyer. The Technology business and its employees have been an important part of CB&I and will remain so through the close of the transaction. However, we believe the business is undervalued as part of CB&I, leading us to the conclusion that the divestment of the business will generate maximum stakeholder value. We plan to use the proceeds from the sale to significantly enhance CB&I's financial strength and flexibility by eliminating the majority of our debt and reinvesting in our Engineering & Construction and Fabrication Services businesses.”

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