Consortium led by Mason Capital Management LLC to acquire CB&I from McDermott
Published by Emilie Grant,
Editorial Assistant
Tanks and Terminals,
A consortium led by Mason Capital Management LLC (Mason), in partnership with IES Holdings Inc., Nut Tree Capital Management LP, 683 Capital Management LLC, First Pacific Advisors, and other investors, has announced that it has entered into a definitive agreement to acquire the CB&I storage solutions business, a designer and builder of storage facilities, tanks and terminals
CB&I is a builder of storage facilities serving customers across the water and wastewater, upstream, downstream, petrochemical and industrial sectors. The company delivers products and solutions for energy infrastructure projects, including low temperature and cryogenic storage systems for LNG, hydrogen, and ammonia. Established in 1889 and headquartered in The Woodlands, Texas, US, CB&I has more than 4000 employees and 30 locations across North America, the Middle East, and Asia.
Mike Martino, Managing Member and Principal of Mason, said: “We are pleased to reach this agreement to acquire and serve as the future stewards of CB&I. We believe the company has potential as a standalone enterprise, and we look forward to investing in industrial and engineering-focused businesses to improve the company’s operations and support profitable, long-term growth.”
Mark Butts, Senior Vice President of CB&I, and the existing CB&I management team will continue to lead the company and said: “Our partnership with Mason and the consortium marks an exciting next chapter for CB&I,”
Following the close of the transaction, which is being funded with 100% equity, CB&I will have a debt free balance sheet, and has secured a new revolving credit facility that will enable it to better compete for and serve new and existing customers and projects. With substantial liquidity to expand operations, the company will take advantage of strong current demand for infrastructure and energy projects.
Citi is acting as exclusive financial advisor 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.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Read the article online at: https://www.tanksterminals.com/special-reports/08102024/consortium-led-by-mason-capital-management-llc-to-acquire-cbi-from-mcdermott/
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