Mc Dermott Divests CB&I Storage Business to Consortium of Financial Investors

Business Decision Mc Dermott Divests CB&I Storage Business to Consortium of Financial Investors

2024-10-09 Source: Press release Mc Dermott 2 min Reading Time

Related Vendors

McDermott

DÜPERTHAL Sicherheitstechnik GmbH & Co. KG

Maag Pump Systems AG

ProMinent GmbH

Under an agreement signed between Mc Dermott and a consortium of financial investors led by Mason Capital Management, Mc Dermott will sell its CB&I storage business for 475 million dollars.

Under the terms of the agreement, Mc Dermott expects to receive 475 million dollars of proceeds before taxes and transaction expenses. (Source: Pixabay) — Under the terms of the agreement, Mc Dermott expects to receive 475 million dollars of proceeds before taxes and transaction expenses.
(Source: Pixabay)

Houston/USA – Mc Dermott International has entered into an agreement to sell its CB&I storage business (CB&I) to a consortium of financial investors led by Mason Capital Management. Under the terms of the agreement, Mc Dermott expects to receive 475 million dollars of proceeds before taxes and transaction expenses. The transaction is expected to be completed in the fourth quarter.

The transaction is the culmination of a comprehensive marketing process during which Mc Dermott received multiple bids from prospective buyers. Pursuant to the terms of Mc Dermott's credit agreement, proceeds from the sale will be used to repay CB&I's existing term loan, cash collateralize certain Mc Dermott letters of credit, and reduce an existing Mc Dermott term loan.

"The significant interest expressed in our storage business is a direct reflection of its long history of providing customers world-class storage solutions and its bright future," said Michael Mc Kelvy, President and Chief Executive Officer of Mc Dermott. "We believe this is the best transaction for our business, CB&I, its customers and employees."

Stay up to Date

Do you want the latest news, specialist articles and information on new products? Then you can register for our free newsletter:

Choose your Newsletter

CB&I has a global footprint and is a leading designer and builder of storage facilities, tanks and terminals. It became part of Mc Dermott in 2018 when the two companies combined. In 2023, Mc Dermott completed actions to strengthen the storage business, including providing a dedicated capital structure.

"We look forward to the next chapter in our 130-year history," said Mark Butts, Senior Vice President of CB&I. "The consortium represents a diverse group of shareholders who are familiar with our business and have long believed in and supported our strategy."

"We are pleased to reach this agreement to acquire and serve as the future stewards of CB&I," said Mike Martino, Managing Member and Principal of Mason. "We believe the Company has significant potential as a standalone enterprise, and we look forward to leveraging our experience successfully investing in industrial and engineering-focused businesses to improve the Company's operations and support profitable, long-term growth."

(ID:50196755)

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Business E-mail

Please enter a valid mailadress.

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy. The consent declaration relates, among other things, to the sending of editorial newsletters by email and to data matching for marketing purposes with selected advertising partners (e.g., LinkedIn, Google, Meta)

Date: 08.12.2025

Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planck-Str. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

Additionally, my consent also includes the processing of my email address and telephone number for data matching for marketing purposes with select advertising partners such as LinkedIn, Google, and Meta. For this, Vogel Communications Group may transmit said data in hashed form to the advertising partners who then use said data to determine whether I am also a member of the mentioned advertising partner portals. Vogel Communications Group uses this feature for the purposes of re-targeting (up-selling, cross-selling, and customer loyalty), generating so-called look-alike audiences for acquisition of new customers, and as basis for exclusion for on-going advertising campaigns. Further information can be found in section “data matching for marketing purposes”.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here. This does not apply to data matching for marketing purposes.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://contact.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.