Source: Sharecast
The ultimate net proceeds from the sale will depend on the quantum of various deductions which will only be confirmed closer to completion. However, the company's administrators expect a range of between $45m and $55m, Petrofac said.
Chief executive Tareq Kawash said: "This is a great outcome for the Asset Solutions business, supporting job security for 3,000 talented team members. CB&I is a strong business with clear growth objectives, now bolstered by the addition of Asset Solutions’ integrated service offering. I want to thank the Asset Solutions team, our customers and supply base for their support as we have worked to secure the business’ future."
CB&I - which designs and builds storage facilities, tanks, and terminals - said the deal strengthens its portfolio with "a complementary reimbursable contracting model business, delivering predictable cash flow and enhancing service capabilities".
CB&I president and chief executive Mark Butts said: "Asset Solutions’ leadership demonstrates pride in operational excellence, commitment to customers, and resilience through challenging circumstances.
"Our organisations share similar management philosophies and industry-leading safety performance. With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation. These factors collectively support CB&I’s long-term growth objectives."