BATON ROUGE, La.—Global infrastructure, engineering and manufacturing firm CB&I will acquire vertically integrated industrial firm Shaw Group Inc. in a cash and stock deal worth about $3 billion.
The deal creates one of the world’s largest engineering and construction companies focused on the global energy industry. Both companies believe this agreement will create value through a combined company with broader participation in a robust energy market.
CB&I will operate Shaw as a business sector under the brand name CB&I Shaw.
The transaction has been approved unanimously by the boards of directors of both companies. CB&I will finance the acquisition using cash on the balance sheets of both companies, along with debt financing pursuant to commitments from Bank of America and Credit Agricole. After regulatory and shareholder approval, the transaction is expected to close in the first quarter of 2013.
The Shaw Group Inc. is an engineering, construction, technology, fabrication, remediation and support services firm supplying the energy, chemicals, environmental, infrastructure and emergency response industries. It posted 2011 annual revenues of $5.9 billion, has 27,000 employees and has a location in Mississauga, Ont.
CB&I engineers and builds some of the world’s largest energy infrastructure projects and has 23,000 employees world wide. It posted 2011 revenue of $4.6 billion and operates five locations in Canada, four of which are in Alberta.