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EXHIBIT 1
NEWS RELEASE
CHICAGO BRIDGE & IRON COMPANY N.V.
FOR IMMEDIATE RELEASE: FOR FURTHER INFORMATION CONTACT:
AUGUST 29, 2000 MEDIA: BRUCE STEIMLE (815) 439-4006
ANALYSTS: JEAN BROWN (815) 439-4072
CHICAGO BRIDGE & IRON SIGNS LETTER OF INTENT
TO ACQUIRE WATER AND ENGINEERED CONSTRUCTION DIVISIONS
OF PITT-DES MOINES, INC.
PLAINFIELD, ILL. -- Aug. 29, 2000 -- Chicago Bridge & Iron Company N.V. (NYSE &
ASE: CBI) has signed a letter of intent to acquire the PDM Engineered
Construction and PDM Water divisions of Pitt-Des Moines, Inc. (AMEX: PDM) of The
Woodlands, Texas. Terms were not disclosed. The two divisions, which form a
portion of PDM's overall business, had combined revenues of $281 million in
1999. Completion of the transaction is subject to the satisfaction of certain
conditions, including due diligence, financing and regulatory clearance.
"PDM's decision to sell their businesses has presented CB&I with a
unique opportunity," said Gerald M. Glenn, CB&I's Chairman, President and CEO.
"The acquisition could provide the next major step in our announced strategy to
achieve significant growth in sustainable revenue, profitability and shareholder
value. PDM has an established reputation for excellence in execution and project
management in the engineering and construction industry. These divisions are
solid, well-managed businesses and, like CB&I, they enjoy considerable growth
prospects, particularly as the upturn in the hydrocarbon industry begins to take
hold.
"We've known PDM for many years as a respected and capable contractor.
While the timing of this transaction is somewhat complicated by our recently
announced Howe-Baker acquisition, this is an opportunity we simply could not
pass up. We believe the customers, employees and shareholders of both companies
will benefit from the transaction. We will be working hard to make it happen."
PDM's Engineered Construction division, headquartered in Houston,
engineers, fabricates and constructs liquid and cryogenic storage tanks and
systems, process systems, and unique plate structures for the petroleum,
petrochemical, cryogenic, liquid natural gas, defense and aerospace industries.
This division employs about 600 people and had 1999 revenues of $186 million.
PDM's Water division, headquartered in Pittsburgh, designs, fabricates and
constructs water storage tank projects including conventional styles such as
ground storage reservoirs and standpipes, steel elevated tanks and composite
elevated tanks as well as unique projects involving one-of-a-kind tanks designed
for specific applications. This division employs about 400 people and had 1999
revenues of $95 million.
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Any statements made in this release that are not based on historical
fact are forward-looking statements and represent management's best judgment as
to what may occur in the future. The actual outcome and results are not
guaranteed, are subject to risks, uncertainties and assumptions and may differ
materially from what is expressed. A variety of factors could cause business
conditions and results to differ materially from what is contained in the
forward-looking statements including, but not limited to, the uncertain timing
and the funding of new awards; cost overruns on fixed priced contracts; increase
in competition by competitors; fluctuating revenues resulting from the cyclic
nature of the individual markets in which the Company's customers operate;
reduced activity in the hydrocarbon industry, demand from which is the largest
component of the Company's revenue; the Company's ability to integrate and
successfully operate acquired businesses, including Howe-Baker International,
Inc. and certain divisions of Pitt-Des Moines, Inc., and the risks associated
with those businesses; and the impact of the Tuban project where work remains
suspended. Additional factors are set forth in the Company's most recent Annual
Report on Form 10-K, Quarterly Report on Form 10-Q and Current Report on Form
8-K (as amended) which describe other factors that could cause actual results to
differ from such forward-looking statements, as well as the Company's other
filings with the Securities and Exchange Commission (including, but not limited
to the "Risk Factors" disclosed in its Registration Statement on Form S-1 [File
No. 333-18065], as amended). The Company does not undertake to update any
forward-looking statements contained herein, whether as a result of new
information, future events or otherwise.
CB&I, founded in 1889, is a global engineering and construction company
specializing in the design and engineering, fabrication, field erection and
repair of bulk liquid terminals, storage tanks, process vessels, refrigerated
storage and process systems, and other steel plate structures and their
associated systems. Information about Chicago Bridge & Iron is available from
the Company's Web site at www.chicagobridge.com.
Pitt-Des Moines, Inc. is a 108-year-old diversified company that
operates in two business segments: Heavy Construction and Steel Distribution.
The company's Heavy Construction business designs and builds tanks and systems
for liquid and cryogenic storage, fabricates steel bridges, fabricates and
erects steel structures for buildings, and designs and builds water storage
systems. PDM Steel Service Centers distribute and provide value-added processing
for a full line of heavy carbon steel products through eight steel service
centers and three culvert pipe facilities. Information about Pitt-Des Moines,
Inc. is available from their Web site at www.pdm.com.
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