McDermott Finalizes Sale of CB&I Storage Business to Mason Capital Management Consortium

McDermott Completes Sale of CB&I Storage Division

In a significant move, McDermott International, Ltd. has finalized the sale of its CB&I storage business to a consortium led by Mason Capital Management. This transaction, which reflects McDermott's strategic realignment, comes with a hefty price tag of $475 million, net of taxes and transaction expenses.

The announcement was made on December 9, 2024, and is seen as a culmination of plans initiated in the past year. According to McDermott's President and CEO, Michael McKelvy, the sale marks the completion of the disintegration of CB&I from McDermott, establishing a new chapter for both entities. McKelvy expressed confidence in CB&I's capacity to thrive under its new ownership, emphasizing their shared history.

The funds generated from this sale are earmarked for various financial obligations, including repaying existing loans associated with CB&I and bolstering McDermott's credit structures. CB&I is recognized globally for its expertise in designing and constructing storage facilities, tanks, and terminals, positioning it as a leader in the energy infrastructure space. It transitioned into McDermott's portfolio back in 2018 when the two companies merged.

This divestment also follows strategic enhancements made by McDermott to its storage operations, which included a restructured financial framework to support CB&I's growth. Notably, Goldman Sachs & Co. LLC acted as the exclusive financial advisor for McDermott during this transition, while Kirkland & Ellis LLP provided legal counsel. On the side of Mason Capital Management, Citi served as their financial advisor and Cadwalader, Wickersham & Taft LLP offered legal services.

McDermott is recognized as an integrated provider of engineering and construction solutions within the energy sector. With operations in over 54 countries and a workforce exceeding 30,000 employees, the company has established itself as a vital player in shaping sustainable energy infrastructures.

Likewise, the intricacies of Mason Capital Management's approach to investment signify a robust focus on absolute returns, leveraging fundamental analysis. The firm, founded in July 2000, has cultivated a diverse strategy encompassing event-driven investments and corporate acquisitions. This strategic move into CB&I underscores Mason's commitment to growth in the energy sector.

CB&I boasts a venerable history, having completed over 60,000 structures over its 135-year existence, establishing itself as the go-to provider of comprehensive storage solutions. Under Mason's guidance, the expectations are high for CB&I to continue its trajectory of success and innovation.

With this significant transaction completed, all eyes are now on the newly independent CB&I, as it navigates the complexities and opportunities of the energy market, backed by the expertise and vision of Mason Capital Management.

For more information about McDermott and its ongoing projects, visit www.mcdermott.com and to learn more about CB&I, check out www.cbi.com. Furthermore, this strategic move highlights not just a shifting landscape within McDermott, but also a rejuvenated focus within the energy sector's intricate ecosystem, promising exciting developments in the near future.