ABB sells Lummus Global to Chicago Bridge & Iron

28 August 2007

Leading power and automation technology group, and the world''s largest maker of factory robotic equipment, ABB Ltd, the world''s largest maker of factory robots, will divest its Lummus Global business to Chicago Bridge & Iron Company (CB&I) for an enterprise value of $950 million.

The sale is subject to regulatory approvals and approval by CB&I''s shareholders.

Under the terms of the agreement, Netherlands-based CB&I will purchase the entire Lummus Global business. Lummus Global employs about 2,400 people and reported revenues of $988 million in 2006.

CB&I is a builder of liquid natural gas terminals and other facilities for natural-resources development. It says it is funding the purchase through a combination of cash and debt and a possible issuance of common stock following the acquisition.

"The divestment of Lummus Global is the final milestone in our strategy of focusing on our highly successful core business in power and automation technology," said Fred Kindle, ABB president and CEO.

"At the same time, we are pleased that CB&I is taking over our Lummus Global business. They are an experienced engineering, procurement and construction company and are therefore in a very good position to further develop Lummus Global''s market activities and operations."