 "FMC Technologies and Technip to merge")
France’s Technip and the US-based FMC Technologies Inc have signed an agreement agreed to combine creating a global leader that will drive change by redefining the production and transformation of oil & gas sector. The combined company, which will be called TechnipFMC, would have an equity value of $ 13 billion based on pre-announcement share prices.
The companies have entered into a Memorandum of Understanding (MOU) and expect to execute a definitive business combination agreement to combine the companies in an all-stock merger transaction.
The transaction brings together two market leaders, building on the proven success of their existing alliance and joint venture, Forsys Subsea, uniting innovative technologies, common cultures and values, enabling rapid integration. The combined company will offer a new generation of comprehensive solutions in subsea, surface and onshore/offshore to reduce the cost of producing and transforming hydrocarbons.
TechnipFMC’s flexible commercial model will provide both integrated and discrete solutions to customers across the value chain. With more than 49,000 employees operating in over 45 countries, TechnipFMC generated 2015 combined revenue of approximately $ 20 billion and combined 2015 EBITDA of approximately $ 2.4 billion. As of March 31, 2016, the two companies together had consolidated backlog of approximately $ 20 billion.
Thierry Pilenko, Technip chairman and chief executive officer, who will serve as executive chairman of TechnipFMC, stated, "Technip and FMC Technologies both have long track records of innovation and commitment to helping their clients meet the challenges of the oil and gas industry. Together, TechnipFMC can add more value across subsea, surface and onshore/offshore, enabling us to accelerate our growth.”
Doug Pferdehirt, president and chief operating officer of FMC Technologies, who will serve as the CEO of TechnipFMC, added, “This transaction will allow us to deliver even greater benefits to our customers through a broadened portfolio that provides a unique set of integrated technologies and competencies that are underpinned by a history of developing rich partnerships and creating customer success.”
