News | January 11, 2001

CB&I completes acquisition of Howe-Baker International

Combination creates $1 billion engineering and construction company

By David Nakamura
Managing Editor, Hydrocarbon Online
dnakamura@hydrocarbononline.com

Chicago Bridge & Iron Company N.V. (Plainfield, IL) recently announced the completion of its acquisition of Tyler, TX-based Howe-Baker International, L.L.C.

"The combination of CB&I and Howe-Baker offers substantial opportunities for growth by expanding Howe-Baker's business into new geographic areas and by leveraging the expected upturn in the hydrocarbon market over a larger business," said Gerald M. Glenn, Chairman, President and CEO of Chicago Bridge & Iron.

"This acquisition joins CB&I's global sales force and international infrastructure for project execution with Howe-Baker's process engineering know-how, modular construction expertise, and low-cost, fixed price contracting capability." Glenn continued.

Howe-Baker International will operate as a wholly-owned subsidiary of Chicago Bridge & Iron Company, and will continue to be run by its existing management team, led by President and CEO Ronald D. Brazzel.

Under the terms of the transaction, CB&I paid $28 million in cash and issued 8.1 million shares of common stock to the seller, WEDGE Group Incorporated—a private investment firm based in Houston, TX, that owned 100% of Howe-Baker International—and assumed certain liabilities.

CB&I is a global engineering and construction company specializing in the design and engineering, fabrication, field erection and repair of bulk liquid terminals, storage tanks, process vessels, refrigerated storage and process systems, and other steel plate structures and their associated systems.

Howe-Baker International, L.L.C. is a global technology company specializing in the design and engineering, fabrication and construction of hydrocarbon processing plants for customers in the petroleum, petrochemical and natural gas industries.

Howe-Baker International has about 2,000 employees and operates three principal business units: Howe-Baker Engineers, L.L.C. based in Tyler, Texas; Matrix Engineering, Ltd., based in Beaumont, Texas; and Callidus Technologies L.L.C., based in Tulsa, Oklahoma.