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
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.