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Technip to acquire Global Industries



Technip has agreed to acquire the entire share capital of US firm Global Industries in a deal that helps the French firms push into the fast-growing subsea segment of oil services.

The two companies have entered into a definitive merger agreement whereby Technip will pay US$8.00 per Global Industries share. The transaction values Global Industries at US$1,073mn, including approximately US$136mn of net debt. The transaction is expected to close early in 2012, Technip said in a statement.

Global Industries brings to Technip its subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels, including two newly-built leading edge S-Lay vessels, as well as strong positions in the Gulf of Mexico, Asia-Pacific and the Middle East.

The transaction helps broaden Technip's strategy of expanding into the subsea market which Technip expects to show fast growth in the coming years.

Strong revenue synergies are expected as the acquisition will substantially increase Technip's current capabilities and expand its addressable market by around 30 per cent in deep-to-shore subsea infrastructure. It also increases Technip's fleet from 20 to 34 vessels with no time-to-market costs and with enhanced overall flexibility. The cost synergies are estimated to be at least US$30mn.

Thierry Pilenko, Chairman and Chief Executive Officer of Technip, said: "The subsea market looks likely in 2011 to show a record amount of orders for our industry and our own backlog at end-June 2011 is above its previous peak. 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."