McDermott International, Inc. announced today that it has completed the spin-off of its power generation systems and government operations segments through the distribution of the shares of The Babcock & Wilcox Company (“B&W”) to holders of McDermott common stock.
As a result, McDermott is now a leading, stand alone engineering, procurement, construction and installation (“EPCI”) company focused on the offshore upstream oil and gas market worldwide. McDermott provides EPCI services related to offshore fixed and floating production facilities, pipelines and subsea systems primarily for national and major oil and gas companies.
“Today is a milestone in McDermott’s history, that we believe brings significant opportunity to accelerate growth based on our distinct corporate strategy, market prospects, free cash flow and customer relationships, allowing for enhanced management focus, more efficient allocation of capital, and greater operational and strategic flexibility,” said Stephen M. Johnson, who became President and Chief Executive Officer of McDermott, as well as a member of McDermott’s Board of Directors, on July 30, 2010.
“Focused on full-service EPCI delivery, our experienced management team is committed to delivering shareholder value through project execution excellence in our three interrelated areas of activity: conventional offshore structures, pipelines and related facilities; floating production systems; and subsea infrastructure, umbilicals, risers and flowlines.”
To support development in these areas, McDermott is focused on expanding into new geographies, growing its engineering and technology capabilities, enhancing fabrication capacity through new facilities, renewing its existing fleet through organic growth and acquisitions, and leveraging EPCI projects.
Under the terms of the spin-off McDermott stockholders received one share of B&W common stock for every two shares of McDermott common stock held at the close of business on July 9, 2010 and will receive a cash payment in lieu of fractional shares of B&W. B&W is now a separate, publicly traded company and McDermott does not retain any ownership interest in B&W. The common stock of B&W will commence regular day trading on the New York Stock Exchange on August 2, 2010 under the symbol “BWC.” McDermott common stock will continue to trade on the New York Stock Exchange under the symbol “MDR.”
ABOUT McDERMOTT
McDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, the Company’s integrated resources include more than 16,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.
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Source: Mcdermottinternationalinc, August 2, 2010: