BATON ROUGE, La., Jan 16, 2002 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") announced today that it has signed a letter
of intent with The IT Group, Inc. to acquire substantially all of the assets and
businesses of The IT Group for approximately $105 million and the assumption of
certain liabilities. Up to 50% of the purchase price is payable in Shaw stock at
either party's option. The letter of intent also contemplates Shaw providing a
secured revolving debtor-in-possession ("DIP") credit facility of up to $75
million, with an initial commitment of $25 million. The credit facility will
provide The IT Group with liquidity for operation of its businesses until the
asset sale is finalized. In conjunction with and as a condition to the proposed
transaction and loan, The IT Group announced that it and certain of its
subsidiaries have filed voluntary petitions for reorganization under Chapter 11
of the U.S. Bankruptcy Code, seeking bankruptcy court approval of the asset sale
and credit agreement.
The IT Group is a leading provider of diversified, value-added consulting,
engineering and construction, remediation and facilities management services.
Through its diverse group of specialized companies, with domestic and
international offices, its clients take advantage of extensive expertise to meet
their global environmental needs. The IT Group's broad range of services
includes the identification of contaminants in soil, air, and water and the
subsequent design and execution of remedial solutions. These services are
provided through several principal business lines including, Government
Services, Commercial Engineering and Construction, Solid Waste, Real Estate
Restoration and Consulting.
"With The IT Group, one of the top environmental firms in the country, Shaw is
obtaining a leading provider of environmental remediation and facilities
management, particularly in the governmental services sector," stated J.M.
Bernhard, Jr. Shaw's Chairman, President and Chief Executive Officer. "This
acquisition, if approved by the Bankruptcy Court, will continue the Company's
strategy of growth and diversification."
Shaw's agreement to purchase The IT Group and provide DIP financing is subject
to execution of definitive documentation and bankruptcy court approval. The
purchase is also subject to approval under the Hart-Scott-Rodino Act.
The Shaw Group Inc. is the world's only vertically-integrated provider of
complete piping systems and comprehensive engineering, procurement and
construction services to the power generation industry. Shaw is the largest
supplier of fabricated piping systems in the United States and a leading
supplier worldwide, having installed piping systems in power plants with an
aggregate generation capacity in excess of 200,000 megawatts. While the majority
of Shaw's backlog is attributable to the power generation industry, the Company
also does work in the process industries, including petrochemical, chemical and
refining, and the environmental and infrastructure sector. The Company currently
has offices and operations in North America, South America, Europe, the Middle
East and Asia-Pacific; and has more than 13,000 employees. For additional
information on The Shaw Group, please visit the Company's web site at
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained herein that are
not historical facts (including without limitation statements to the effect that
the Company or its management "believes," "expects," "anticipates," "plans," or
other similar expressions) and statements related to revenues, earnings,
backlog, or other financial information or results are forward-looking
statements based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such
risks or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those projected in
the forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including its Form 10-K and Form 10-Q, reports and on the Company's web-site
under the heading "Forward Looking Statement". These documents are also
available from the Securities and Exchange Commission or from the Investor
Relations department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our web site
CONTACT: The Shaw Group Inc., Baton Rouge
Kevin LeBlanc, 225/932-2500
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