Global engineering firm McDermott International has announced it will move forward with the previously announced share and asset purchase agreement to sell all of the Lummus Technology business to a joint partnership between The Chatterjee Group and Rhône Capital.
McDermott did not receive a higher or better bid during the solicitation period, and the auction previously scheduled for 9 March 2020 will not occur.
As announced on Jan. 21, 2020, subsidiaries of McDermott entered into a share and asset purchase agreement to sell Lummus Technology to The Chatterjee Group and Rhône Capital, as the “stalking horse bidder,” for a base purchase price of $2.725 billion, subject to higher or otherwise better bids received through a court-supervised auction process.
Under the terms of the Agreement, McDermott will have the option to retain or purchase, as applicable, a 10 percent common equity ownership interest in the entity purchasing Lummus Technology.
Proceeds from the sale of Lummus Technology are expected to repay McDermott’s DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.
McDermott is a provider of technology, engineering and construction solutions to the energy industry. Operating in over 54 countries, McDermott’s locally focused and globally integrated resources include about 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
