McDermott to explore possible sale of Lummus Technology

McDermott International, a US-based provider of technology, engineering and construction solutions to the energy industry, will explore all possible options to assess the strategic and financial value of its technology business Lummus Technology.

The move follows unsolicited approaches received by the company to acquire all or part of Lummus Technology for an enterprise value of more than US$2.5 billion.

McDermott acquired the Lummus business following a US$6 billion all-stock merger deal with Chicago Bridge & Iron in May 2018.

Lummus Technology is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering.

With 3,100 patents and patent applications, Lummus Technology offers a wide range of technologies to the hydrocarbon processing sector.

McDermott to explore possible sale of Lummus Technology. Image courtesy of Stuart Miles/Freedigitalphotos.net.

David Dickson – president and CEO of McDermott said: “The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott’s capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet.

“While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value.”

Previously, McDermott has announced its ongoing efforts to divest its remaining share in pipe fabrication and industrial storage tank businesses.

Evercore is acting as the lead advisor on the strategic alternatives process for Lummus Technology.

McDermott with approximately 32,000 employees operates a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.