McDermott International, announced it has completed the sale of its CB&I storage business  to a consortium of financial investors led by Mason Capital Management. Under the terms of the agreement announced October 7, 2024, McDermott will receive $475 million of proceeds before taxes and transaction expenses.

“This transaction achieves a strategic goal set in motion last year and fully completes the separation of CB&I from McDermott,” said Michael McKelvy, President and Chief Executive Officer of McDermott. “We will always have a shared history and know they will continue to lead the storage business under their new ownership.”

Pursuant to the terms of McDermott’s credit agreement, proceeds from the sale will be used to repay CB&I’s existing term loan, cash collateralize certain McDermott letters of credit, and reduce an existing McDermott term loan.

CB&I has a global footprint and is a leading designer and builder of storage facilities, tanks and terminals. It became part of McDermott in 2018 when the two companies combined. In 2023, McDermott completed actions to strengthen the storage business, including providing a dedicated capital structure.

Goldman Sachs & Co. LLC is serving as the exclusive financial advisor for the transaction to McDermott. Kirkland & Ellis LLP is serving as legal counsel to McDermott. Citi is acting as exclusive Financial Advisor to Mason. Cadwalader, Wickersham & Taft LLP is serving as legal counsel to Mason Capital Management.