Investopedia: CB&I's Acquisition Of Shaw Is Shocking And Awesome
CB&I (NYSE:CBI) announced on July 30 that it will acquire Shaw Group (NYSE:SHAW)
for $3 billion, or $46 per Shaw share. The deal will be made up of $41
per share in cash and $5 in stock (0.13 shares of CB&I), and values
Shaw at a 72% premium to July 27's close. The deal price also carries a
seven times multiple to the 2012 EBITDA multiple for Shaw - a slight premium to the broader sector.
To execute the deal, CB&I will need to raise about $1.9 billion in debt financing, but the company expects the deal to be accretive almost immediately.