CB&I has agreed to acquire Shaw Group, a US-based
engineering company primarily focused on serving clients in the
power generation and government services sector, officials with
both firms said Monday.
The acquisition is expected to close in early 2013. Reports
valued the overall deal at approximately $3 billion.
CB&I said that combining the two
companies will create one of the most complete
energy focused technology, engineering,
procurement, fabrication, construction, maintenance, and associated services
companies in the world.
With a global workforce of nearly 50,000 employees, backlog
of over $28 billion, and engineering and fabrication facilities strategically located on
all continents, the company will have the capacity to execute
large energy infrastructure projects now and in the future,
according to company officials.
is a highly compelling transaction that we believe will create
significant value for our shareholders, said Philip K.
Asherman, president and CEO of CB&I.
By adding them into the CB&I family, we will
become fully diversified across the entire energy sector, from
power generation to LNG,
from refining to gas
processing, from offshore to oil Sands, and
beyond, Mr. Asherman continued.
We will have the capabilities and the expertise to
provide our clients with the full range of solutions, wherever
they are in the world.
CB&I will acquire Shaw for $46.00/share in cash and
stock, with shareholders receiving $41.00 in cash and $5.00 in
CB&I equity (0.12883 shares based on a recent average stock
price of $38.81/share) for each share of Shaw stock at
CB&I will use cash on the balance sheets of both
companies, along with approximately $1.9 billion in debt, to
finance the acquisition, it said.
Shaws leadership position in the power,
environmental and infrastructure industries will complement
CB&Is current business, said J.M. Bernhard Jr.,
CEO of Shaw.
The acquisition of Shaw was unanimously approved by the
directors of each companys boards.
The transaction is subject to approval by each
companys shareholders, along with the receipt of certain
regulatory approvals and the satisfaction of other customary
Asherman will continue as CEO of the combined company.
CB&I plans to operate Shaw as a business sector under
the brand name CB&I Shaw, the company said, enabling the
new company to retain Shaws brand equity, particularly in
the power industry.