Petrofac to sell Asset Solutions business to Texas-based CB&I

(Sharecast News) - Petrofac said on Wednesday that it has agreed to sell its Asset Solutions business to Texas-based CB&I in a deal that will save thousands of jobs. The ultimate net proceeds from the sale will depend on the quantum of various deductions which will only be confirmed closer to completion. However, the company's administrators expect a range of between $45m and $55m, Petrofac said.

Chief executive Tareq Kawash said: "This is a great outcome for the Asset Solutions business, supporting job security for 3,000 talented team members. CB&I is a strong business with clear growth objectives, now bolstered by the addition of Asset Solutions' integrated service offering. I want to thank the Asset Solutions team, our customers and supply base for their support as we have worked to secure the business' future."

CB&I - which designs and builds storage facilities, tanks, and terminals - said the deal strengthens its portfolio with "a complementary reimbursable contracting model business, delivering predictable cash flow and enhancing service capabilities".

CB&I president and chief executive Mark Butts said: "Asset Solutions' leadership demonstrates pride in operational excellence, commitment to customers, and resilience through challenging circumstances.

"Our organisations share similar management philosophies and industry-leading safety performance. With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation. These factors collectively support CB&I's long-term growth objectives."