CB&I has announced its intent to sell its Technology business. It is hoping to close the transaction by the end of the 2017 calendar year.
CB&I's Technology business provides proprietary process technology licenses, associated engineering services and catalysts. It offers process planning, project development services and a comprehensive programme of aftermarket support primarily for the petrochemical and refining industries.
The sale is intended to include the former Engineered Products business, which is currently part of CB&I's Fabrication Services operating group, but previously was part of the Technology group. The former Engineered Products business specialises in equipment modularisation, proprietary equipment and engineering services. CB&I intends to maintain its interest in the NET Power technology.
"With 3000 patents and patent application trademarks and more than 100 licensed technologies, we are one of the largest providers of licensed process technologies in the world," said Patrick Mullen, CB&I's President and CEO. "This is a business that consistently generates very attractive margins with minimal capital requirements. Our intent is to negotiate a long-term strategic alliance with the ultimate buyer, which we believe could benefit both CB&I and the buyer.
"The Technology business and its employees have been an important part of CB&I and will remain so through the close of the transaction. However, we believe the business is undervalued as part of CB&I, leading us to the conclusion that the divestment of the business will generate maximum stakeholder value," Mullen continued. "We plan to use the proceeds from the sale to significantly enhance CB&I's financial strength and flexibility by eliminating the majority of our debt and reinvesting in our Engineering and Construction and Fabrication Services businesses."
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/11082017/cbi-to-sell-technology-business/