US-based CB&I has completed the acquisition of Petrofac’s UK-based Asset Solutions business, a move that secures the future of the division and its approximately 3,000 employees. The deal, finalised on Christmas Eve, will see the North Sea operations integrated into CB&I’s global structure, with Aberdeen serving as a key hub.
Key Takeaways
- US firm CB&I has acquired Petrofac’s UK Asset Solutions business.
- Approximately 3,000 jobs are expected to be secured.
- The North Sea business will operate as CB&I Asset Solutions, headquartered in Aberdeen.
- The deal follows Petrofac’s administration due to financial difficulties.
Securing the Future of North Sea Operations
Following Petrofac’s financial difficulties and subsequent administration in October, concerns were raised about the fate of its employees in Scotland. The acquisition by CB&I is seen as a positive outcome, ensuring the continuity of operations and safeguarding the roles of many skilled individuals. James Bennett, joint administrator for Petrofac, stated that the acquisition represents a "very positive outcome" and secures the future of the Asset Solutions business.
Integration into CB&I’s Global Structure
The acquired North Sea business will form one of CB&I’s two global business units, operating under the name CB&I Asset Solutions. This unit will work in tandem with CB&I Storage Solutions, based in Texas. John Pearson, Chief Operating Officer of Petrofac Asset Solutions, expressed enthusiasm for the deal, highlighting the "operational and engineering talent" within the division and the opportunity to focus on core strengths and customer relationships.
A New Chapter for Asset Solutions
CB&I’s acquisition is expected to diversify its revenue streams through a reimbursable contracting model. Mark Butts, CB&I’s Chief Executive and President, noted the strong cultural alignment and shared management philosophies between the two organisations, including a commitment to industry-leading safety performance. He believes this combination will enhance performance and deliver stable cash flow, contributing to CB&I’s "long-term growth objectives."
The deal is subject to approval from certain creditors, with completion anticipated in January. Petrofac entered administration with secured debts amounting to approximately £560 million.
