McDermott and Chicago Bridge & Iron Company N.V. (CB&I) have selected the executive leadership team and integrated organizational structure of the combined company, which will be effective upon the close of the transaction.
The two companies agreed to merge in an all-stock transaction to create an integrated onshore-offshore company in December 2017. The deal was valued at $6 billion. The proposed merger cleared an antitrust hurdle in the U.S. with early termination of Hart-Scott-Rodino (HSR) waiting period in January.
The transaction is currently expected to close in second quarter of 2018.
McDermott President and Chief Executive Officer David Dickson, who will lead the combined company, said on Tuesday: “The plans announced today are important steps to position the combined company to build a common culture, better serve our customers, become more competitive and drive long-term growth.
“I’m looking forward to being joined by an experienced leadership team comprised of extraordinary talent from both organizations and the wider energy industry. Together we will be well positioned to maximize our proven ability to control risk in bidding and deliver excellence in project execution in a cost-efficient delivery structure. We will partner with our customers to provide integrated, end-to-end solutions – from the wellhead to the storage tank – that deliver the quality, efficiency and dependability needed to keep their businesses growing.”
Upon the close of the transaction, the combined company’s operations will be organized by four Areas – North, Central & South America (NCSA), Europe, Africa, Russia & Caspian (EARC), Middle East & North Africa (MENA) and Asia Pacific (APAC).
CB&I’s Technology business will remain a tier-one market facing offering. The Areas and Technology divisions will be supported by centralized Commercial and Project Delivery organizations.
According to McDermott, the integration of Commercial, including the centralization of the company’s bidding functions, will improve customer interactions, allocation of resources, consistency of approach and risk management of new contracts.
The centralization of Project Delivery, including Project Management & Controls, Engineering, Supply Chain, Marine, Fabrication, Construction, and Quality, Health, Safety, Environment & Security (QHSES), will also significantly enhance project delivery performance, McDermott said.
The Area, Technology and Project Delivery teams will also be supported by centralized Corporate Strategy, Finance, Human Resources, Legal and Communication units.
Executive leadership team under new structure
David Dickson, currently serving as President & Chief Executive Officer for McDermott, will continue in that role for the combined company.
Stuart Spence, currently serving as Executive Vice President & Chief Financial Officer for McDermott, will continue in that role for the combined company.
Richard Heo will become head of North, Central and South America (NCSA) for the combined company; he is currently Executive Vice President, Fabrication Services for CB&I.
Tareq Kawash will become head of Europe, Africa, Russia and the Caspian (EARC) for the combined company; he is currently Group Vice President of Engineering and Construction International for CB&I.
Ian Prescott, currently Vice President, Asia for McDermott, will continue as the head of Asia Pacific (APAC) for the combined company.
Linh Austin will become head of Middle East and North Africa (MENA) for the combined company; he is currently Vice President, Middle East and Caspian for McDermott.
Daniel McCarthy, currently serving as Executive Vice President, Technology for CB&I, will continue as head of Technology for the combined company.
Brian McLaughlin, currently serving as Senior Vice President, Commercial for McDermott, will continue as head of Commercial for the combined company.
Jonathan Kennefick, currently serving as Senior Vice President, Project Execution and Delivery for McDermott, will continue as head of Project Execution and Delivery for the combined company.
Scott Munro will become head of Corporate Development for the combined company; he is currently Vice President, Americas, Europe and Africa for McDermott.
Steve Allen will become head of Human Resources for the combined company; he was previously Senior Vice President, Human Resources for McDermott.
John Freeman, currently serving as Senior Vice President, General Counsel and Corporate Secretary for McDermott, will continue as head of Legal for the combined company.
Gentry Brann, currently Senior Vice President, Global Communications and Brand Management for CB&I, will continue as head of Communications for the combined company.
Tony Brown, currently Vice President, Corporate Strategy & Chief Integration Officer for McDermott, will continue as head of Integration for the combined company.
The combination remains subject to satisfaction of the remaining closing conditions, including clearance under Russian competition laws, approval by McDermott’s stockholders and CB&I’s shareholders, completion of financing and other customary conditions.