HOUSTON, Sept. 20, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) today announced it recently
received unsolicited approaches to acquire all or part of Lummus
Technology, McDermott's industry-leading technology business, with
valuation exceeding $2.5 billion.
Based on the receipt of these approaches, McDermott is exploring
strategic alternatives to unlock the value of Lummus Technology
while maintaining the strategic rationale of engineering,
procurement and construction (EPC) pull-through.
McDermott's Lummus Technology is a leading licensor of
proprietary petrochemicals, refining, gasification and gas
processing technologies, and a supplier of proprietary catalysts
and related engineering. With a heritage spanning more than 100
years, encompassing approximately 3,100 patents and patent
applications, Lummus Technology provides one of the industry's most
diversified technology portfolios to the hydrocarbon processing
sector.
"Lummus is an excellent business, with incredibly impressive
employees, that has earned a reputation for expertise, innovation
and reliability in the refining and petrochemical industries," said
David Dickson, President and Chief
Executive Officer of McDermott. "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."
Separately, McDermott's previously announced processes to sell
the remaining portion of its pipe fabrication business and its
industrial storage tank business are ongoing.
McDermott has retained Evercore as the lead advisor on the
strategic alternatives process for Lummus Technology.
About McDermott
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 approximately 32,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this communication which are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties. These forward-looking statements
include, among other things, statements about improving McDermott's
capital structure, intended use of proceeds from a transaction
involving a sale of all or part of the Lummus Technology business
and strengthening of McDermott's balance sheet. Although we
believe that the expectations reflected in those forward-looking
statements are reasonable, we can give no assurance that those
expectations will prove to have been correct. Those statements are
made by using various underlying assumptions and are subject to
numerous risks, contingencies and uncertainties, including, among
others: negotiations with third parties; regulatory and other
approvals; adverse changes in the markets in which McDermott
operates or credit or capital markets; and actions by lenders,
other creditors, customers and other business counterparties of
McDermott. If one or more of these risks materialize, or if
underlying assumptions prove incorrect, actual results may vary
materially from those expected. You should not place undue reliance
on forward-looking statements. For a more complete discussion
of these and other risk factors, please see each of McDermott's
annual and quarterly filings with the U.S. Securities and Exchange
Commission, including McDermott's annual report on Form 10-K for
the year ended December 31, 2018 and subsequent quarterly
reports on Form 10-Q. This communication reflects the views of
McDermott's management as of the date hereof. Except to the
extent required by applicable law, McDermott undertakes no
obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and
Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.