McDermott receives offers to sell tech unit Lummus for over $2.5B

McDermott International has received offers to sell its Lummus Technology business. The oilfield services company said the valuation of the tech business exceeded $2.5 billion.

“Based on the receipt of these approaches, McDermott is exploring strategic alternatives to unlock the value of Lummus Technology while maintaining the strategic rationale of engineering, procurement and construction (EPC) pull-through,” McDermott said.

McDermott’s Lummus Technology is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering.

“With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry’s most diversified technology portfolios to the hydrocarbon processing sector,” McDermott said-

“Lummus is an excellent business, with incredibly impressive employees, that has earned a reputation for expertise, innovation, and reliability in the refining and petrochemical industries,” said David Dickson, President and Chief Executive Officer of McDermott. “The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott’s capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet. While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value.”

Separately, McDermott said that its previously announced processes to sell the remaining portion of its pipe fabrication business and its industrial storage tank business are ongoing.

McDermott has retained Evercore as the lead advisor on the strategic alternatives process for Lummus Technology.

Offshore Energy Today Staff


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Posted on September 20, 2019 with tags .

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