Shaw to sell energy & chemicals group to Technip
The Shaw Group Inc. today announced it has entered into a definitive agreement to sell substantially all of its Energy & Chemicals business to Technip.
Under the terms of the agreement, Technip will acquire substantially all of the business of the Energy & Chemicals Group for approximately $300 million in cash consideration, subject to adjustment based on the Energy & Chemicals Group''s debt and working capital levels at closing.
Shaw will retain Energy & Chemicals Group personnel in its Baton Rouge office, which will be integrated into the company''s Plant Services Division, as well as Shaw Consulting International Inc., which will be incorporated into Shaw''s Environmental & Infrastructure Group. Shaw also will retain its Toronto-based operations and is reviewing options regarding future plans for this office. Additionally, Shaw will maintain its obligations under an engineering, procurement and construction contract associated with a large ethylene plant in southeast Asia that is now approximately 98 percent complete.
Shaw and Technip also have agreed to work toward developing future business relationships involving Shaw''s core business units.
"We believe this divestiture creates the greatest value for our shareholders, while allowing Shaw to pursue additional opportunities for growth in the primary industries we serve," said J.M. Bernhard Jr., Shaw''s chairman, president and chief executive officer. "Shaw will continue to focus our efforts on growing our leadership positions in our core business lines and ensuring excellence and consistency across all operations."
The Shaw Group is a provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. A Fortune 500 company with fiscal year 2011 annual revenues of $5.9 billion, Shaw has approximately 27,000 employees around the world.
Technip says it is a world leader in project management, engineering and construction for the energy industry.