CB&I announces plans to sell Technology business
CB&I announced its intent to sell the company's Technology business. CB&I is targeting to close the transaction by the end of the 2017 calendar year. "Supported by more than 100 years of technology development, our Technology business is unique. With 3,000 patents and patent application trademarks and more than 100 licensed technologies, we are one of the largest providers of licensed process technologies in the world," said Patrick Mullen, CB&I's President and CEO. "This is a business that consistently generates very attractive margins with minimal capital requirements. Our intent is to negotiate a long-term strategic alliance with the ultimate buyer, which we believe could benefit both CB&I and the buyer. The Technology business and its employees have been an important part of CB&I and will remain so through the close of the transaction. However, we believe the business is undervalued as part of CB&I, leading us to the conclusion that the divestment of the business will generate maximum stakeholder value," continued Mr. Mullen. "We plan to use the proceeds from the sale to significantly enhance CB&I's financial strength and flexibility by eliminating the majority of our debt and reinvesting in our Engineering & Construction and Fabrication Services businesses."