HOUSTON and CALGARY, AB, Feb. 21, 2023 /PRNewswire/ -- An agreement has been reached with CAM Industrial Solutions LLC (CAM Industrial), whereby Worley will sell its maintenance and turnaround business in North America, which is part of Worley's Americas Field Services, for a cash consideration of USD 125 million (approximately AUD180 million). Worley's construction and fabrication business in North America is not included in the sale. The sale also includes Worley's power operations and maintenance business.
The transaction is subject to regulatory approval and customary closure conditions and is expected to close in the second half of FY2023.
The North America maintenance and turnaround business is Worley's operating and shutdown maintenance craft work (non-professional services) in the USA and Canada, which supports refineries, petrochemical plants, and other industrial facilities.
On today's announcement, Worley Chief Executive Officer Chris Ashton said Worley was delighted to be entering into this agreement with CAM Industrial and was looking forward to seeing the company continue to successfully service its many loyal customers across its markets.
CAM Industrial is a new company, formed by an investor group, led by Cross Rapids Capital L.P. (Cross Rapids Capital) and including strategic partner The Baupost Group. Cross Rapids is an operationally driven investment firm, focused on acquiring industrial and services companies in North America.
The existing management team will join and manage CAM Industrial and will be led by Mick Kaefer as its President. Donovan Boyd, Executive Partner with Cross Rapids Capital, will be appointed Chief Executive Officer of CAM Industrial. Mr Boyd is a highly successful and tenured executive in industrial services, having previously served as the Chairman and Chief Executive Officer of Hydrochem LLC, Director of The Brock Group, Executive Chairman, Chairman of B&G Crane, and Director of Brand Energy.
Mr Kaefer said, "We thank our employees for their dedication and our customers for their business and support. Under our new name, CAM Industrial, our team will continue to be focused on safely and reliably operating our business, without interruption. We are very excited about this transaction and the growth prospects ahead."
Mr Boyd added, "CAM Industrial welcomes our newest employees and is thrilled to partner with them to grow the company into the preeminent provider of hard craft maintenance and turnaround services in the industry. CAM Industrial will continue to operate with the values of safety, high-quality service, and responsiveness to customers."
Cross Rapids Capital Partner, Kyle Cruz, concluded, "We look forward to completing the transaction and investing in new processes, tools, and systems in order to better serve our customers and to pursue new growth initiatives."
UBS Securities LLC is acting as exclusive financial advisor to Worley, and Reed Smith LLP is acting as Worley's legal advisor. Greenberg Traurig, LLP is acting as Cross Rapids Capital's legal advisor.
About Worley: Worley is a global company domiciled in Australia with a purpose of delivering a more sustainable world. Worley is a leading global provider of professional project and asset services in the energy, chemicals, and resources sectors. As a knowledge-based service provider, we use our knowledge and capabilities to support our customers to reduce their emissions and move towards a low carbon future. Worley Limited is listed on the Australian Securities Exchange (ASX: WOR).
About CAM Industrial Solutions LLC: At the closing of the transaction, CAM Industrial Solutions LLC will provide maintenance and turnaround services to refineries, chemical plants, natural resource extraction and processing, and other industrial facilities across the U.S. and Canada, as well as operations and maintenance services to utilities. CAM Industrial operates with the values of safety, high-quality service, and responsiveness to customers. For more information, please visit camindustrialsolutions.com.
About Cross Rapids Capital L.P.: Cross Rapids Capital L.P. is an operationally driven investment firm, dedicated to North American middle-market industrial and services companies. We partner with owners and management teams to accelerate companies, and we bring decades of sector, operational, and investing expertise and a hands-on, collaborative approach to empower their business success. For more information, please visit crossrapids.com.
About The Baupost Group: The Baupost Group is a Boston-based investment manager with a long-term, value-oriented approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm's largest client. Baupost manages roughly $25 billion with a broad and flexible charter, investing in a wide range of asset classes, including significant holdings in publicly traded debt and equity securities, private debt, real estate, and private equity. CEO and Portfolio Manager Seth Klarman has overseen Baupost's investments from the company's inception.
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SOURCE CAM Industrial Solutions LLC
