French giant Technip will acquire US-based subsea construction and pipelay company Global Industries in a cash deal worth $1.07 billion, the companies have announced.
The deal will see Technip pay $8 per Global Industries Share and take on about $136 million of debt, in a deal funded through existing cash balances and credit facilities.
Expected to close in 2012, Technip said the deal would add between 5% and 7% to its earnings in 2013 due to cost savings and the combined company’s expanded reach to new customers. Cost synergies were expected to be about $30 million.
Technip said the merger would help it broaden its business, expanding its addressasble market by about 30% and increasing the size of its fleet from 20 vessels to 34 vessels.
Technip chief executive Thierry Pilenko said in an announcement the subsea market was likely to show a record amount of orders this year, with offshore developments in Brazil , the Gulf of Mexico, West Africa and Asia Pacific leading the way for future growth
“Our investment in Global Industries substantially expands our addressable market in subsea,” he said.
“Global Industries’ capabilities, know-how and experience, notably in S-Lay and Heavy Lift, add to our already unique vertically integrated range of products and services, enabling us to offer our clients greater value in the execution of complex projects from deep-to-shore.”
“We expect that the application of Technip's own skills in offshore and subsea developments, its commercial footprint and its project management experience will drive a rapid deployment of the Global Industries teams and assets on customer projects.”
Global Industries employs 2300 people operating 14 vessels, including two newly-built S-Lay vessels, and has strong positions in the Gulf of Mexico (US and Mexican waters), Asia-Pacific and the Middle East .
The deal required approval from regulators, by Global Industries shareholders and other customary conditions and provisions.
Fonte: Upstream Online
