New York City-based investment firm Veritas Capital has agreed to purchase the capital services business of energy technology and infrastructure provider CB&I (NYSE: CBI) for approximately $755 million.
Veritas said Tuesday it expects to complete the acquisition in the second quarter of 2017 and will rename and run the business as an independent firm once the transaction is finalized.
The deal comes a month after the private equity firm agreed to acquire the government information technology services business of Harris Corp. (NYSE: HRS) for approximately $690 million and two weeks after Veritas raised $3.55 billion for its sixth fund that seeks to invest in technology-focused middle-market companies that work with commercial and government-related customers.
CB&I’s capital services segment recorded at least $2 billion in fiscal 2016 revenue and operates with approximately 15,000 employees.
The current senior management team will oversee the business, which provides environmental engineering, disaster response, program management, remediation, infrastructure engineering procurement construction support, maintenance and recovery services to government and industry clients.
Ramzi Musallam, CEO and managing partner of Veritas Capital and an inductee into Executive Mosaic’s Wash100 for 2017, said Veritas aims to leverage the capital services business’ safety and operational experience to build a platform intended for a new growth phase.