US McDermott Exercises Lummus Option
US group McDermott International has reinvested in its former gas technology arm Lummus, which it sold to a joint venture between US investment firms Chatterjee Group and Rhone Capital last year for $2.73bn.
The sales agreement with Chatterjee and Rhone Capital gave McDermott the option to buy back 10%. McDermott, which exited bankruptcy in June 2020, said the purchase reflected its belief in Lummus' long-term strategic plan. The pair have continued working together since their separation under a strategic agreement.
"Together, we will continue to combine McDermott's innovative EPC delivery with Lummus' innovative technology solutions to our customers across the globe," CEO David Dickson said.
McDermott acquired Lummus in 2018 as part of its CB&I takeover. It is a licensor of gas processing, refining, petrochemical and coal gasification technologies, as well as a supplier of proprietary catalysts, equipment and related engineering services.