CB&I, a global designer and builder of storage facilities, tanks, and terminals, has entered into an agreement to acquire Petrofac's Asset Solutions business. This move is aimed at helping Petrofac reduce its mounting debt burden during an ongoing administration process, which began after the collapse of its restructuring plan and the termination of a major offshore wind contract.

Strategic Rationale for the Acquisition

The acquisition is a strategic expansion for CB&I. It strengthens the company's portfolio by adding a complementary reimbursable contracting model business, which is expected to deliver predictable cash flow and enhance service capabilities. This model diversifies CB&I's revenue streams, reduces cyclicality, and broadens its service offering beyond its traditional lump-sum engineering, procurement, and construction (EPC) portfolio. The move supports CB&I's diversification into integrated services, expands customer relationships, and opens pathways for growth in international markets.

Post-Acquisition Structure and Integration

Following the transaction, CB&I will operate as one company with two global business units:

• CB&I Asset Solutions, based in Aberdeen, Scotland (the acquired business).
• CB&I Storage Solutions, based in The Woodlands, Texas (the existing operations).

Each business will maintain its own delivery accountability for focused execution while leveraging CB&I's corporate functions for strategic alignment and support. The leadership highlights strong cultural alignment, shared management philosophies, and industry-leading safety performance between the two organizations, foreseeing enhanced performance and stable cash flow generation.

Outcome for Petrofac and Transaction Details

For Petrofac, the sale is described as a very positive outcome that secures the future of the Asset Solutions operations and the roles of its many highly skilled employees. The business is noted to have an exciting future within CB&I due to strong operational compatibility and a complementary geographic footprint. The transaction is expected to be completed in the first quarter of 2026, subject to conditions including creditor approvals anticipated by the end of January 2026. Upon closing, approximately 3,000 Petrofac employees are expected to join CB&I. The financial terms of the acquisition were not disclosed.