Posted on 30.12.2011 - 13:00 EST in ACQUISITION/MERGER NEWS by Rons_ROV_Links
Technip announced today that it has completed the acquisition of Global Industries, Ltd. The shareholders of Global Industries approved the merger at a special shareholders meeting held on November 30, 2011 and will receive US$8.00 per share in cash. Global Industries has become an indirect, wholly-owned subsidiary of Technip and trading of its shares will be suspended after NASDAQ closes today.
The completion of the merger will allow the integration of Global Industries into Technip to begin, thus benefiting Technip's and Global Industries' employees and clients, who have been very supportive of the transaction.
The initial integration planning carried out since the announcement has confirmed the rationale for bringing Technip's subsea activities and those of Global Industries together.
The merger was completed ahead of schedule. In 2012, Technip will focus on the integration and deployment of Global Industries' teams and assets to secure order intake.
Technip intends to provide additional details on the integration process and associated first year costs, as well as its financial outlook, during the presentation of its 2011 full year results on February 16, 2012.
In 2013, the transaction is expected to be accretive to Technip's earnings per share by around 5 to 7%, reflecting the first revenues from combined projects and the implementation of at least US$30 million in cost synergies. Thereafter, with further accretion, overall returns are expected to be in line with Technip's subsea hurdle rate of 15% ROCE over a business cycle.
The acquisition will be financed using Technip's existing cash deposits and short-term borrowings. On November 18, 2011, Technip has also signed a US$1.1 billion 2-year multi-currency bank facility which provides additional financial flexibility.
Thierry Pilenko, Chairman and Chief Executive Officer of Technip, said: "I am delighted that we can now welcome the teams of Global Industries to Technip, having completed this merger ahead of schedule. Combining the strengths of two world-class teams will allow us to seize the exciting opportunities that lie ahead notably by handling a broader scope of projects. Our priority is now to quickly and smoothly integrate the teams from Global Industries that it has been a pleasure to start to get to know over the last 2 ½ months, so that our combined teams can focus on winning and executing projects, thus delivering greater value for both our customers and our shareholders."