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Chicago Bridge buying Shaw Group
Posted on Tuesday, 31 July 2012 12:58
Dutch energy infrastructure project developer Chicago Bridge & Iron (CB&I) has agreed to acquire New York Stock Exchange-listed Shaw Group, a Louisiana-based provider of a range of services including engineering and construction, technology, fabrication, remediation and support.
CB&I is offering USD 46.00 in cash and USD 5.00 worth of CB&I stock per share in the target, in a deal valued at around USD 3.00 billion.
JM Bernhard, chief executive of the buyer said: “Shaw’s leadership position in the power, environmental and infrastructure industries will complement CB&I’s current business, and I am confident that, together, these two companies will continue to excel.”
Philip Asherman, chief executive of CB&I added: “Shaw is a great company with tremendously talented employees. By adding them into the CB&I family, we will become fully diversified across the entire energy sector.
“We will have the capacity and the expertise to provide our clients with the full range of solutions, wherever they are in the world. Most importantly, we will have the experience and relationships necessary to successfully meet and exceed our clients’ expectations.”
The boards of both companies have approved the deal, which is subject to approval by regulatory bodies and the firms’ shareholders.
Completion is expected during the first quarter of 2013.
Shaw Group is headquartered in Baton Rouge and provides services to customers in the energy, chemicals, environmental, infrastructure and emergency response industries.
The firm employs 27,000 people and is a Fortune 500 company.
It was formed in 1986 and in fiscal 2011 recorded revenue of USD 5.94 billion, down 14.9 per cent on the USD 6.98 billion generated in 2010.
CB&I is based in the Hague and claims to engineer and construct some of the largest energy infrastructure projects worldwide.
The business was founded in 1889 and employs around 16,000 people.
It has been listed on the NYSE since March 1997.
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