The proposed divestiture includes a license to use CB&I’s cryogenic tank technology and the sale of certain construction equipment to Matrix Service for an undisclosed amount.
CB&I will also subcontract up to $20 million of cryogenic and liquefied natural gas tank work in the US to Matrix Service over the next several years.
In addition, CB&I will transfer approximately 70 engineering and construction personnel to Matrix Service, along with the procedures necessary to enhance its competitiveness in the product lines as specified in the US Federal Trade Commission’s (FTC) ruling. This agreement, pending FTC approval, is anticipated to be completed in the fourth quarter of 2008.
Philip Asherman, president and CEO of CB&I, said: This divestiture, if approved, removes the uncertainties surrounding this FTC issue and is in the best interest of our shareholders.
