McDermott International to spin off subsidiaries

McDermott International (McDermott) is separating its operating subsidiaries, The Babcock & Wilcox Co. (B&W) and J. Ray McDermott, S.A. (J. Ray), into two independent, publicly traded companies.

Offshore staff

HOUSTON -- McDermott International (McDermott) is separating its operating subsidiaries, The Babcock & Wilcox Co. (B&W) and J. Ray McDermott, S.A. (J. Ray), into two independent, publicly traded companies. The separation will be executed through a spin-off of B&W, the company says.

Following completion of the separation, McDermott intends to be renamed J. Ray McDermott, S.A., and shareholders will own 100% of two separate companies: B&W and J. Ray. The company expects to complete the transaction in nine to 12 months.

“The separation of B&W and J. Ray will be a transformational event for McDermott, which we expect to deliver important benefits to our shareholders, as well as the employees of each business,” says John A. Fees, CEO of McDermott. “We believe that as separate, independent, publicly traded entities, B&W and J. Ray will benefit from enhanced management focus, more efficient capital allocation, and greater operational and strategic flexibility.”

12/07/2009

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