Consortium Led by Mason Capital Management to Acquire CB&I From McDermott
A consortium led by Mason Capital Management has entered into a definitive agreement to acquire CB&I, a leading storage solutions business, from McDermott International, . The all-cash equity transaction will establish CB&I as an independent company with no funded debt. CB&I, founded in 1889, is a global leader in designing and building storage facilities for energy and industrial markets, employing over 4,000 people across 30 locations worldwide.
The acquisition aims to leverage CB&I's potential as a standalone enterprise, with the existing management team continuing to lead the company. Post-transaction, CB&I will have a debt-free balance sheet and a new revolving credit facility, positioning it to capitalize on strong market demand and energy transition storage solutions. The deal is expected to close in Q4 2024, subject to customary closing conditions.
Un consorzio guidato da Mason Capital Management ha firmato un accordo definitivo per acquisire CB&I, un'azienda leader nel settore delle soluzioni di stoccaggio, da McDermott International. La transazione, completamente in contante, stabilirà CB&I come un'azienda indipendente senza debiti finanziati. Fondata nel 1889, CB&I è un leader mondiale nella progettazione e costruzione di strutture di stoccaggio per i mercati energetici e industriali, impiegando oltre 4.000 persone in 30 sedi nel mondo.
L'acquisizione mira a sfruttare il potenziale di CB&I come impresa autonoma, con il team di gestione esistente che continuerà a dirigere l'azienda. Dopo la transazione, CB&I avrà un bilancio privo di debito e una nuova linea di credito rotativa, posizionandola per capitalizzare sulla forte domanda di mercato e sulle soluzioni di stoccaggio per la transizione energetica. Si prevede che l'accordo si chiuda nel Q4 2024, soggetto alle condizioni consuete di chiusura.
Un consorcio liderado por Mason Capital Management ha firmado un acuerdo definitivo para adquirir CB&I, una empresa líder en soluciones de almacenamiento, de McDermott International. La transacción, en efectivo, establece a CB&I como una empresa independiente sin deuda financiada. Fundada en 1889, CB&I es un líder global en el diseño y construcción de instalaciones de almacenamiento para los mercados energéticos e industriales, empleando a más de 4,000 personas en 30 ubicaciones en todo el mundo.
La adquisición tiene como objetivo aprovechar el potencial de CB&I como empresa independiente, con el equipo de gestión existente que continuará dirigiendo la compañía. Después de la transacción, CB&I tendrá un balance libre de deuda y una nueva línea de crédito revolvente, posicionándola para capitalizar sobre la fuerte demanda del mercado y las soluciones de almacenamiento para la transición energética. Se espera que el acuerdo se cierre en Q4 2024, sujeto a las condiciones habituales de cierre.
메이슨 캐피탈 매니지먼트가 이끄는 컨소시엄이 맥더모트 인터내셔널로부터 선도적인 저장 솔루션 기업인 CB&I를 인수하기 위한 최종 계약을 체결했습니다. 현금으로 이루어진 이번 거래는 CB&I를 채무가 없는 독립적인 회사로 자리 잡게 할 것입니다. 1889년에 설립된 CB&I는 에너지 및 산업 시장을 위한 저장 시설의 설계 및 구축에서 글로벌 리더로, 전 세계 30개 위치에서 4,000명 이상의 직원을 고용하고 있습니다.
이번 인수는 독립 기업으로서의 CB&I의 잠재력을 활용하려는 목표를 가지고 있으며, 기존 경영진이 회사를 계속 이끌게 됩니다. 거래 이후 CB&I는 부채가 없는 대차대조표와 새로운 회전 신용 시설을 갖추게 되어, 강력한 시장 수요와 에너지 전환 저장 솔루션을 활용할 수 있는 위치에 있게 됩니다. 이 거래는 2024년 4분기에 종료될 것으로 예상되며, 일반적인 종료 조건에 따릅니다.
Un consortium dirigé par Mason Capital Management a signé un accord définitif pour acquérir CB&I, un leader des solutions de stockage, auprès de McDermott International. La transaction entièrement en espèces établira CB&I en tant qu'entreprise indépendante sans dettes financées. Fondée en 1889, CB&I est un leader mondial dans la conception et la construction d'installations de stockage pour les marchés de l'énergie et de l'industrie, employant plus de 4 000 personnes dans 30 sites à travers le monde.
L'acquisition vise à tirer parti du potentiel de CB&I en tant qu'entreprise autonome, avec l'équipe de direction actuelle continuant à diriger l'entreprise. Après la transaction, CB&I disposera d'un bilan sans dette et d'une nouvelle facilité de crédit renouvelable, lui permettant de capitaliser sur une forte demande du marché et des solutions de stockage pour la transition énergétique. La conclusion de l'accord est prévue pour le Q4 2024, sous réserve des conditions habituelles de clôture.
Ein von Mason Capital Management geführtes Konsortium hat eine endgültige Vereinbarung zum Erwerb von CB&I, einem führenden Unternehmen für Speicherungslösungen, von McDermott International getroffen. Die Bartransaktion wird CB&I als unabhängiges Unternehmen ohne finanzierte Schulden etablieren. CB&I, gegründet 1889, ist ein globaler Marktführer im Entwurf und Bau von Speicheranlagen für die Energie- und Industriewirtschaft und beschäftigt weltweit über 4.000 Mitarbeiter an 30 Standorten.
Die Übernahme zielt darauf ab, das Potenzial von CB&I als eigenständiges Unternehmen zu nutzen, wobei das bestehende Managementteam weiterhin das Unternehmen leiten wird. Nach der Transaktion wird CB&I eine schuldenfreie Bilanz und eine neue revolvierende Kreditfazilität haben, wodurch es in der Lage sein wird, von starker Marktnachfrage und Lösungen für Energiespeicher im Übergang zu profitieren. Der Deal wird voraussichtlich im Q4 2024 abgeschlossen, vorbehaltlich der üblichen Abschlussbedingungen.
- Acquisition establishes CB&I as an independent company with no funded debt
- New revolving credit facility secured to enhance competitiveness
- Strong financial footing for CB&I post-transaction
- Potential for improved operations and profitable long-term growth
- Opportunity to capitalize on strong end market demand and energy transition storage solutions
- None.
Insights
This consortium acquisition of CB&I represents a strategic positioning move for IES Holdings, though its specific financial commitment remains undisclosed. The transaction structure - using 100% equity financing with no funded debt - indicates a conservative approach that minimizes immediate financial risk while establishing CB&I with a clean balance sheet and new revolving credit facility.
The deal's all-equity structure suggests substantial capital commitment from consortium members, including IES. Without knowing IES's proportional investment relative to its
CB&I's positioning in critical energy transition markets (LNG, hydrogen, ammonia storage) aligns with accelerating infrastructure demand. The retention of existing management signals operational continuity and suggests the consortium is betting on CB&I's established expertise rather than implementing radical operational changes. The expected Q4 2024 closing means financial impact won't materialize until late 2025, providing ample preparation time for integration planning.
CB&I represents a significant opportunity for IES Holdings to gain exposure to high-growth energy transition infrastructure. As "the world's most technically advanced builder of storage facilities," CB&I specializes in complex low-temperature and cryogenic storage systems essential for next-generation fuels like hydrogen and ammonia, positioning it at the intersection of traditional energy and decarbonization pathways.
The timing appears strategically advantageous - the article notes "strong current demand for infrastructure and energy projects." CB&I's established presence across 30 locations spanning North America, the Middle East, and Asia provides immediate international scale that would be difficult to build organically. Their specialization in technically complex storage systems creates substantial barriers to entry, protecting market position.
For IES, this represents diversification beyond its traditional electrical and communications infrastructure focus into adjacent energy sectors with different growth drivers and customer bases. The consortium approach allows IES to participate in this strategic expansion while sharing governance responsibilities with experienced investment partners. Post-acquisition, CB&I's debt-free balance sheet and new credit facility should enable aggressive pursuit of projects in growing markets without immediate capital constraints.
All Cash Equity Transaction Establishes CB&I as Strong Independent Company Positioned for Growth With No Funded Debt
CB&I is the world’s most technically advanced builder of storage facilities serving customers across the water and wastewater, upstream, downstream, petrochemical and industrial sectors. The Company delivers products and solutions for critical energy infrastructure projects, including complex low temperature and cryogenic storage systems for LNG, hydrogen, and ammonia. Established in 1889 and headquartered in
Mike Martino, Managing Member and Principal of Mason, said, “We are pleased to reach this agreement to acquire and serve as the future stewards of CB&I. CB&I is a true pioneer and market leader, having set standards for safety and technical performance in the bulk liquid storage industry and cultivated a sterling reputation for on time and on specification delivery of its projects. We believe the Company has significant potential as a standalone enterprise, and we look forward to leveraging our experience successfully investing in industrial and engineering-focused businesses to improve the Company’s operations and support profitable, long-term growth.”
Mark Butts, Senior Vice President of CB&I, and the existing CB&I management team will continue to lead the Company.
Mr. Butts said, “Our partnership with Mason and the consortium marks an exciting next chapter for CB&I and is a testament to our differentiated capabilities and team. Importantly, this transaction puts CB&I on strong financial footing as we move forward as an independent company. As always, we remain committed to collaborating with our customers and suppliers to deliver innovative solutions that address the evolving infrastructure needs of the energy and industrial markets. We will continue to honor CB&I’s legacy of excellence in quality and reliability while working with our new partners to capitalize on strong end market demand and the shift towards energy transition storage solutions globally.”
Following the close of the transaction, which is being funded with
Citi is acting as exclusive Financial Advisor to Mason and is Lead Left Arranger on the new revolving credit facility to support the transaction.
Cadwalader, Wickersham & Taft LLP provided legal counsel to Mason.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
About Mason Capital Management LLC
Mason Capital Management LLC is an absolute return focused investment firm that combines deep fundamental analysis with hard catalysts to drive value creation. Founded in July 2000 by Ken Garschina and Mike Martino, Mason’s strategies range from event-driven investing to corporate carve-outs and control acquisitions.
About CB&I
CB&I is the world's leading designer and builder of storage facilities, tanks, and terminals. With more than 60,000 structures completed throughout its 130-year history, CB&I has the global expertise and strategically located operations to provide its customers world-class storage solutions for even the most complex energy infrastructure projects. CB&I is a wholly owned unrestricted subsidiary of McDermott. To learn more, visit www.cbi.com.
About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott's innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241006864317/en/
For Mason:
Jonathan Gasthalter/Sam Fisher
Gasthalter & Co.
(212) 257-4170
For McDermott & CB&I:
Reba Reid
Global Media Relations
+1 281 588 5636
RReid@McDermott.com
Source: Mason Capital Management LLC
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