Offshore engineering, construction, and installation company McDermott International has expanded its capabilities, becoming an onshore-offshore EPCI specialist, as it closed the acquisition of CB&I on Thursday.
The new company, described as the “premier, fully integrated provider of technology, engineering and construction solutions for the energy industry” will continue under the name McDermott.
“This is an exciting day for McDermott,” said David Dickson, President and Chief Executive Officer of McDermott. “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification, and gas processing technologies and solutions—creating a company that spans the entire value chain from concept to commissioning.
“Together, we have the integrated technology, engineering expertise, construction experience and global reach to design and build the energy infrastructure of the future,” said Dickson, who, prior to joining taking over as CEO of McDermott International in late 2013, spent 11 years with Technip S.A. and its subsidiaries, including as President of Technip U.S.A.
The proposed all-stock merger was first announced in December, with the terms that McDermott shareholders will own approximately 53 percent of the combined company on a fully diluted basis and CB&I shareholders will own approximately 47 percent.
The estimated enterprise value of the transaction was approximately $6 billion, based on the closing share price of McDermott on December 15, 2017.
Speaking in favor of the merger at the time, Dickson said that customers worldwide increasingly sought a single company that can offer end-to-end solutions, “and the combination of McDermott and CB&I responds to these evolving customer needs by creating a leading vertically integrated company.”
Also, providing the rationale for the transaction last year, the two companies said, the combination would unite McDermott’s established presence in the Middle East and Asia with CB&I’s robust operations in the United States, “creating a balanced geographic portfolio with a strong position in high growth developing regions.”
Further, the two companies said at the time the joint firm would have a presence across onshore and offshore, upstream, downstream and power markets, “enhancing competitiveness and enabling more consistent, predictable performance through market cycles.”
David Dickson, current President and Chief Executive Officer of McDermott, will be President and Chief Executive Officer of the combined company, and Stuart Spence, current Executive Vice President and Chief Financial Officer of McDermott, will be Executive Vice President and Chief Financial Officer of the combined company.
Patrick Mullen, President and Chief Executive Officer of CB&I, will remain with the combined company for a transition period to help with integration.
Offshore Energy Today Staff