Technip to buy Global Industries for $937m
Paris, September 12, 2011
French group Technip is to buy US underwater oil services specialist Global Industries for an agreed $937 million, to expand in the fast-growing underwater oil services sector.
Technip said on Monday the deal would add 5-7 per cent to earnings in 2013, helped by savings -- cost synergies should be at least $30 million.
The deal is worth $8 per Global Industries share, a 55 per cent premium to Friday's close. Global Industries offers services in shallow and deep water oil services, owns 14 vessels, and is present in the Gulf of Mexico, the Middle East and Asia Pacific.
"The transaction is consistent with Technip's strategy to broaden its business and range of services in the subsea market which Technip expects to show fast growth in the coming years," it said.
"The acquisition of Global Industries will expand the subsea market we can address by roughly 30 per cent," Technip chief executive Thierry Pilenko said on a conference call.
Blackstone Advisory Partners and Tudor, Pickering, Holt & Co. Securities, Inc advised Technip on the deal, while law firm Davis Polk & Wardwell LLP acted as legal advisor.
Technip shares closed at 65.24 euros on Friday, down 5.6 per cent this year, giving it a market capitalisation of 7.2 billion euros ($9.9 billion). – Reuters