CB&I has announced it has completed the sale of its capital services business to an affiliate of private equity firm Veritas Capital. CB&I and Veritas Capital agreed to amend the sales price to US$700 million, with net proceeds of approximately US$650 million after working capital adjustments and transaction costs. CB&I will record an additional non-cash pre-tax charge of approximately US$50 million in the second quarter of 2017 to account for the change in sales price.
"I would like to congratulate the Veritas Capital and CB&I teams on the successful and timely close of the transaction," said Patrick K. Mullen, who assumes the role of CB&I's Chief Executive Officer 1 July. "Completing the sale of our capital services business is a significant milestone in CB&I's plan to deliver our balance sheet, and we expect an additional positive impact on our overall business by recognising related cost synergies."