The Shaw Group Inc. (NYSE: SHAW) said it has entered into an agreement to sell substantially all of its Energy & Chemicals business to Technip for approximately $300 million in cash consideration, subject to adjustment based on the Energy & Chemicals Group’s debt and working capital levels at closing.
Shaw will retain Energy & Chemicals Group personnel in its Baton Rouge office, which will be integrated into the company’s Plant Services Division, as well as Shaw Consulting International Inc., which will be incorporated into Shaw’s Environmental & Infrastructure Group. Shaw also will retain its Toronto-based operations and is reviewing options regarding future plans for this office.
Shaw and Technip also have agreed to work toward developing future business relationships involving Shaw’s core business units.
The divestiture is targeted to be complete in Shaw’s fourth quarter of fiscal year 2012.
UBS Investment Bank is acting as exclusive financial advisor and Vinson & Elkins LLP is acting as legal advisor to Shaw in this transaction.
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