NEW YORK--(BUSINESS WIRE)--Veritas Capital, a leading private equity investment firm, today announced that an affiliate of Veritas has signed a definitive agreement to acquire the Capital Services business of CB&I (NYSE:CBI) for $755 million.
With approximately 15,000 employees deployed across hundreds of offices and customer sites globally, the Capital Services business provides comprehensive and integrated maintenance services, environmental engineering and remediation, infrastructure EPC services, program management, and disaster response and recovery for private sector and government customers. The business serves a diverse mix of commercial customers in the power, oil & gas, chemical, manufacturing and retail sectors. Government customers include U.S. federal departments and agencies such as the DoD, DoE, FEMA and EPA, as well as state and local governments. The business generated more than $2 billion of revenue in 2016.
Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas Capital, said, “We are excited to acquire such a world-class business that has distinguished itself through a steadfast commitment to its customers, safety and operational excellence. Its skilled and experienced employees are trusted partners to their government and commercial customers, with thousands of Capital Services’ employees arriving to client sites each day to help them achieve their mission-critical objectives. The Company’s unique capabilities and longstanding operating history coupled with the resources and long-term focus of Veritas will create a differentiated platform that is well-positioned for a new phase of growth, both organically and via acquisitions.”
E. Chip Ray, Executive Vice President of Capital Services, said, “This transaction establishes CB&I’s Capital Services business as an independent company with the support of a premier investment firm. Veritas Capital brings a long history of successful stewardship, a deep understanding of our markets, and a global network of relationships that will be invaluable to our business. With Veritas as a partner, we are excited and confident that we will be able to capitalize on the many attractive opportunities ahead.”
The transaction is anticipated to close in the second quarter. Upon closing, Capital Services will be renamed and will operate as an independent company. Existing senior management will continue to lead the business.
About Veritas Capital
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the aerospace & defense, healthcare, technology, national security, communications, government services, energy, and education industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.
About CB&I
CB&I (NYSE:CBI) is a leading provider of technology and infrastructure for the energy industry. With over 125 years of experience and the expertise of more than 40,000 employees, CB&I provides reliable solutions to our customers around the world while maintaining a relentless focus on safety and an uncompromising standard of quality. For more information, visit www.CBI.com.