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McDermott International Ltd. is selling its CB&I storage solutions business to a consortium led by Mason Capital Management LLC, the companies announced in an Oct. 7 press release.
Members of the consortium include IES Holdings Inc., Nut Tree Capital Management LP, 683 Capital Management LLC, First Pacific Advisors and others.
Financial details of the transaction weren’t disclosed. McDermott and CB&I combined in 2017 in a $6 billion all-stock merger.
CB&I builds storage facilities, tanks and terminals across multiple sectors of the energy industry, including wastewater, upstream, downstream, petrochemical and industrial. The company delivers products for critical energy infrastructure projects, such as low temperature and cryogenic LNG, hydrogen and ammonia storage systems.
“CB&I is a true pioneer and market leader, having set standards for safety and technical performance in the bulk liquid storage industry and cultivated a sterling reputation for on time and on specification delivery of its projects,” said Mike Martino, managing member and principal of Mason, in the press release.
Senior Vice President of CB&I Mark Butts and the existing CB&I management team will continue to lead the company as it moves forward as an independent company.
The all-cash transaction will be funded 100% in equity and is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Citi is acting as exclusive financial adviser to Mason and is lead left arranger on the new revolving credit facility to support the transaction. Cadwalader, Wickersham & Taft LLP provided legal counsel to Mason.
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