Rhone Group and Chatterjee Group have agreed to buy Lummus Technology for $2.725 billion. The seller is McDermott International Inc. Lummus Technology is a provider of petrochemical technology.
3 March 2020
HOUSTON, March 3, 2020 /PRNewswire/ — McDermott International, Inc. (“McDermott” or the “Company”) today announced that the Company intends to 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 (the “Joint Partnership”). McDermott did not receive a higher or better bid during the solicitation period, and the auction previously scheduled for Monday, March 9, 2020, will not occur.
As announced on Jan. 21, 2020, subsidiaries of McDermott entered into a share and asset purchase agreement (the “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.
The sale hearing to confirm the sale of Lummus Technology to the Joint Partnership will take place on Thursday, March 12, 2020, at 9:00 a.m. CT.
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.
More information about McDermott’s restructuring, including access to Court documents, will be available at https://cases.primeclerk.com/McDermott or contact Prime Clerk, the Company’s noticing and claims agent, at +1 877-426-7705 (for toll-free U.S. domestic calls) and +1 917-994-8380 (for tolled international calls), or email McDermottInfo@primeclerk.com.
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the “One McDermott Way.” Operating in over 54 countries, McDermott’s locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.