McDermott International has completed the sale of CB&I, a designer and builder of storage facilities, to a consortium of financial investors, led by Mason Capital Management, in an all-cash equity transaction.

Other investors in the consortium include IES Holdings, Nut Tree Capital Management, 683 Capital Management, First Pacific Advisors, and more.

The agreement, which was initially announced on 7 October 2024, has resulted in McDermott receiving $475m in proceeds before taxes and transaction expenses.

The funds acquired from the sale will be allocated in accordance with McDermott's credit agreement. This includes repaying the existing term loan of CB&I, cash collateralising certain McDermott letters of credit, and reducing an existing term loan.

McDermott president and CEO Michael McKelvy said: "This transaction achieves a strategic goal set in motion last year and fully completes the separation of CB&I from McDermott.

"We will always have a shared history and know they will continue to lead the storage business under their new ownership."

CB&I, engaged in designing and constructing storage facilities, tanks, and terminals, became a part of McDermott in 2018, following a merger.

In 2023, McDermott undertook measures to bolster the storage business, which included the provision of a dedicated capital structure.

For this transaction, Goldman Sachs & Company has been the exclusive financial advisor to McDermott. Kirkland & Ellis has provided legal counsel. On the other side, Citi has acted as the exclusive financial advisor to Mason, with Cadwalader, Wickersham & Taft serving as the company's legal counsel.

McDermott is an integrated provider of engineering and construction solutions to the energy industry and operates in over 54 countries.

Last month, the company secured a master services agreement with Willis Sustainable Fuels (UK) for sustainable aviation fuel facilities in the UK.