McDermott closes sale of storage business

HOUSTON, December 10, 2024 – McDermott has completed the sale of its CB&I storage business to a consortium led by investment firm Mason Capital Management for USD 475 million before taxes and transaction expenses, McDermott announced on Monday.

CB&I designs and builds storage facilities, tanks, and terminals worldwide. The company has completed more than 60,000 structures and contributed to numerous complex energy infrastructure projects.

The agreement was first announced in October 2024. Under the terms, proceeds from the sale will be used to repay CB&I’s existing term loan, cash collateralise certain McDermott letters of credit and reduce an existing McDermott term loan.

The buying consortium comprises Mason Capital Management, IES Holdings, Nut Tree Capital Management, 683 Capital Management, First Pacific Advisors and other investors.

“We are thrilled to partner with Mason and the consortium as we embark on an exciting new chapter as a standalone company. With the closing of this transaction, we are on solid financial footing, which positions us to capitalise on strong end-market demand and to advance our strategic goals,” said Mark Butts, CEO of CB&I.

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