-Veritas Capital, a leading private equity investment firm, has announced that an affiliate of Veritas has signed a definitive agreement to acquire the Capital Services business of CB&I for US$755 million. With approximately 15 000 employees deployed across hundreds of offices and customer sites globally, the capital services business provides comprehensive and integrated maintenance services, environmental engineering and remediation, infrastructure EPC services, programme management, and disaster response and recovery for private sector and government customers. The business serves a diverse mix of commercial customers in the power, oil and gas, chemical, manufacturing and retail sectors. Government customers include US federal departments and agencies such as the DoD, DoE, FEMA and EPA, as well as state and local governments. The business generated more than US$2 billion of revenue in 2016.
Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas Capital, said, “We are excited to acquire such a world-class business that has distinguished itself through a steadfast commitment to its customers, safety and operational excellence. Its skilled and experienced employees are trusted partners to their government and commercial customers, with thousands of Capital Services’ employees arriving to client sites each day to help them achieve their mission-critical objectives. The Company’s unique capabilities and longstanding operating history coupled with the resources and long-term focus of Veritas will create a differentiated platform that is well-positioned for a new phase of growth, both organically and via acquisitions.”
E. Chip Ray, Executive Vice President of Capital Services, said, “This transaction establishes CB&I’s Capital Services business as an independent company with the support of a premier investment firm. Veritas Capital brings a long history of successful stewardship, a deep understanding of our markets, and a global network of relationships that will be invaluable to our business. With Veritas as a partner, we are excited and confident that we will be able to capitalise on the many attractive opportunities ahead.”
The transaction is anticipated to close in the second quarter. Upon closing, Capital Services will be renamed and will operate as an independent company. Existing senior management will continue to lead the business.
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