CB&I announced its intent to sell the company's technology business. CB&I is targeting to close the transaction by the end of the 2017 calendar year.
CB&I's technology business provides proprietary process technology licenses and associated engineering services, and catalysts, and offers process planning, project development services and a comprehensive programme of aftermarket support, primarily for the petrochemical and refining industries.
The sale is intended to include the former engineered products business, which is currently part of CB&I's fabrication services operating group, but previously was part of the technology group. The former engineered products business specialises in equipment modularisation, proprietary equipment and engineering services. CB&I intends to maintain its interest in the NET Power technology.
"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," said Patrick K Mullen, president and CEO, CB&I.
"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,” added Mullen.
"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," opined Mullen.
"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," concluded Mullen.
CB&I has retained Bank of America Merrill Lynch and Wachtell, Lipton, Rosen & Katz to advise on the divestiture.