The Shaw Group completes acquisition of Stone & Webster's assets

The Shaw Group announced that it has completed the acquisition of substantially all of the assets and the assumption of certain liabilities of Stone & Webster ("S&W"). The Company stated that it was the successful bidder in an auction for the business of S&W, with a purchase price of approximately $ 38 mm in cash and approximately 2.5 mm shares of Shaw Common Stock. On July 13, 2000, a court order was signed under Chapter 11 of the US Bankruptcy Code approving the transaction.
Jefferies & Company and Morgan Keegan & Company were advisors to Shaw on the transaction. J.M. Bernhard, Jr., Shaw's Chairman, President and CEO, stated, "We are very excited to announce that we have completed our acquisition of Stone & Webster. Assessment teams are in place at each S&W location and major project sites, and we will begin the integration process immediately. Our ongoing evaluations confirm the tremendous talent that exists within the Stone & Webster organisation, and we are confident that the addition of this world-class workforce will be invaluable to Shaw as we expand our presence in the global marketplace, particularly in power generation." The Company also announced that it replaced its existing $ 100 mm revolving credit facility with a new $ 400 mm underwritten facility. The $ 400 mm facility will be syndicated to a new bank group.

The Shaw Group is the largest supplier of fabricated piping systems and services in the world, with unparalleled piping experience and expertise in the global power generation market. Shaw is also a leader in providing innovative solutions to the chemical and petrochemical processing, crude oil refining and oil and gas exploration and production industries. With over 7,500 employees world-wide, Shaw distinguishes itself by offering its customers comprehensive piping solutions consisting of integrated engineering and design, fabrication, erection and maintenance of piping systems and the manufacture of speciality pipe fittings and supports. The ability to provide comprehensive piping solutions enables the Company to be a cost-effective single-source provider of fabricated piping systems and services for projects around the world. The Company operates facilities in California, Louisiana, New Hampshire, New Jersey, Oklahoma, South Carolina, Texas, Utah, Virginia, Australia, the United Kingdom, Venezuela and Bahrain, where it has a 49 % interest in a joint venture.

Stone & Webster is a leading global provider of full-service, value-added engineering, procurement, construction, consultation and environmental services to the power, process, governmental and industrial markets. S&W is headquartered in Boston, Massachusetts and employs over 5,500 people at operations in the US and internationally.