The Shaw Group has entered into an agreement to sell its energy and chemicals business to France-based engineering major Technip, the companies said late Monday.
Under the terms of the agreement, Technip will acquire the segment for approximately $300 million in cash, subject to adjustment based on the groups debt and working capital levels at closing.
US-based Shaw will retain energy and chemicals group personnel in its Baton Rouge office, which will be integrated into the companys plant services division, as well as Shaw Consulting International, which will be incorporated into Shaws environmental and infrastructure group.
Shaw also will retain its Toronto-based operations and is reviewing options regarding future plans for that office, it said.
Additionally, Shaw said it will maintain obligations under an engineering, procurement and construction contract associated with a large ethylene plant in southeast Asia that is now approximately 98% complete.
Shaw and Technip further agreed to work toward developing future business relationships involving Shaws core business units, the companies added.
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., Shaws CEO.
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 sale is targeted to be complete in Shaws fourth quarter of fiscal year 2012.