Technip, Global Industries enter into merger agreement
Technip (TEC) has announced an agreement to acquire the entire share capital of Global Industries (GLBL) and reinforce its leadership in the fast-growing subsea segment of oil services, TEC press release said.
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$1,073 million (EUR768 million at current exchange rates), including approximately US$136 million of net debt. The Board of Directors of Global Industries has unanimously approved the transaction.
The transaction price represents a 55 premium to Global Industries' share closing price on September 9, 2011, the last day prior to announcement of the transaction. The transaction is to be funded using existing cash balances and credit facilities.
Global Industries brings to Technip its complementary subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels. The fleet includes two newly-built leading edge sister ships, Global 1200 and Global 1201, both with S-Lay and Heavy Lift capabilities.
The transaction is expected to close early in 2012.
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$1,073 million (EUR768 million at current exchange rates), including approximately US$136 million of net debt. The Board of Directors of Global Industries has unanimously approved the transaction.
The transaction price represents a 55 premium to Global Industries' share closing price on September 9, 2011, the last day prior to announcement of the transaction. The transaction is to be funded using existing cash balances and credit facilities.
Global Industries brings to Technip its complementary subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels. The fleet includes two newly-built leading edge sister ships, Global 1200 and Global 1201, both with S-Lay and Heavy Lift capabilities.
The transaction is expected to close early in 2012.
Thierry Pilenko, Chairman and Chief Executive Officer of Technip, said: "The acquisition of Global Industries reinforces Technip's leadership in Subsea, one of our three market segments alongside Onshore and Offshore. 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. We see that our customers continue to firm up a substantial number of large offshore developments with Brazil, the Gulf of Mexico. West Africa and Asia Pacific leading the way to drive future growth. Our investment in Global Industries substantially expands our addressable market in subsea. 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. The transaction is expected to meet our hurdle rate, create value for Technip's shareholders, and raise earnings per share starting by around 5 to 7% in 2013."
Technip is a world leader in project management, engineering and construction for the energy industry. The Company is engaged in the deepest Subsea oil & gas developments, the largest and most complex Offshore and Onshore infrastructures. Technip presented in 48 countries, has a workforce of 23,000 people and operates a fleet of specialized vessels for pipeline installation and subsea construction.
Global Industries is a US-based leading solutions provider of subsea construction and pipelay, engineering, project management and support services. Global Industries has the ambition to operate in promising high value markets, from high-end shallow water to subsea EPCI, and deep-to-shore installation of infrastructures.