The Chatterjee Group, Rhône Capital Complete Joint Acquisition of Lummus Technology
- Transaction establishes Lummus Technology as a standalone company
- Lummus positioned to lead and shape end markets and industry
- The Chatterjee Group and Rhône provide strategic guidance with financial and operational resources to help drive Lummus' long-term growth complement
HOUSTON, June 30, 2020 /PRNewswire/ -- Lummus Technology today announced that Haldia Petrochemicals Limited, the flagship company of The Chatterjee Group (TCG), and investment funds affiliated with Rhône Capital have successfully completed the joint acquisition of Lummus from McDermott International. As previously announced, under the terms of the share and asset purchase agreement Chatterjee and Rhône committed to acquiring Lummus for a base purchase price of $2.725 billion from subsidiaries of McDermott as part of McDermott's restructuring process.
"This new and notable chapter starts with Lummus being a standalone company, as we will be the only major process technology licensor that is independent and privately held," said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. "For our customers, employees and partners, this is a significant milestone. We will be able to focus exclusively on providing world class technologies and solutions and developing long-term strategies that will allow Lummus to lead and shape the future of our industry."
Lummus is a leading master licensor of proprietary gas processing, refining, petrochemical, and gasification technologies as well as a supplier of catalysts, equipment and related services. These technologies are critical in the refining of crude oil into gasoline, diesel, jet fuel and lubes; the manufacturing of petrochemicals and polymers; as well as the gasification of coal into syngas.
Dr. Purnendu Chatterjee, Founder Chairman of TCG, added: "Our investments are both strategic and long-term, where most span across 25-30 years. We have primarily focused on knowledge-based companies, and Lummus is a great addition to our portfolio. Leading with innovation, Lummus delivers sustainable value to clients in the area of materials technology. We also see a significant synergy with our existing portfolio companies in the area of digitalization. We, being a long-term client of Lummus, can understand from the customers' perspective and will now move towards co-creative innovation"
M. Steven Langman, Co-Founder and Managing Director of Rhône, added, "Together with Chatterjee, we identified a unique opportunity to acquire an established, market leading business from McDermott. Rhône has deep experience partnering with management teams of multinational, industry leaders like Lummus and standing up and creating businesses positioned to grow and improve as independent companies. We look forward to working with the Lummus leadership team during its next phase as a standalone business as it initiates strategies to deliver its services and technology to a broader base of customers."
Under the terms of the purchase agreement, McDermott and Lummus have entered into a strategic agreement to form a mutually beneficial arrangement in which Lummus and McDermott will cooperate to contribute their respective strengths to offer value to mutual customers.
About Lummus
With a heritage spanning more than 110 years and a focus on innovation that has resulted in approximately 130 technologies and 3,400 patents, Lummus Technology is the global leader in developing and implementing process technologies. We are a Master Licensor of petrochemical, refining, gasification and gas processing technologies, and a supplier of catalysts, proprietary equipment and related services to customers worldwide. To learn more about the new Lummus, visit www.LummusTechnology.com.
About The Chatterjee Group
The Chatterjee Group (TCG), with the HQ in USA, has an enviable track record as a strategic investor, with businesses in many sectors. Founded by Dr. Purnendu Chatterjee in mid 80's, the Group focusses on knowledge-based Industries and owns and controls companies as long term investments in several sectors including Petrochemicals, Pharmaceuticals, Biotech and Technology, serving global markets. Recently the group has launched a not for profit initiative, TCG CREST, designed to be the next generation research university which has intense collaboration with other research centers, both academic and in the industry. Focused on problems of high impact, the four centers currently operational are in NeuroScience, Quantum Computing, Solid State Battery (in sustainable energy) and Artificial Intelligence/Machine Learning. www.thechatterjeegroup.com/ www.tcgcrest.org/
About Rhône
Rhône, established in 1996, is a global private equity firm with a focus on investments in businesses with pan-European, North American or transatlantic presence. Rhône's investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests. The firm operates across its London, New York and Madrid offices, with a presence in Latin America. Rhône has invested in a diversified portfolio of companies including investments in the business services, consumer and industrial sectors.
SOURCE Lummus Technology, LLC
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