Technip In Merger Talks With Global Industries

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$1,070.0MM
Description

To acquire subsea service provider, gaining 14 vessels, including two newly built leading edge SLay vessels, & a presence in the Gulf of Mexico, Asia Pacific & Middle East.

Technip, Paris, (Paris: TEC; NYSE Euronext Paris: TEC) plans to acquire Global Industries Ltd., Houston, (Nasdaq: GLBL) for approximately US$1.07 billion (€768 million) in cash and debt.

Technip will pay US$8 per Global Industries share a 55% premium to Global's closing share price on Sept. 9 and a 92% premium to its average closing share price for the 30 trading days ending on Sept. 9. Technip will also assume US$136 million of net debt held by Global Industries.

Global Industries provides subsea services supported by 14 vessels, including two newly built leading edge SLay vessels, and important geographic positions notably in the Gulf of Mexico (U.S. and Mexican waters), Asia Pacific and the Middle East. The assets will complement Technip's skills in these areas.

Technip chairman and chief executive Thierry Pilenko says, “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 CEO John B. Reed says, “Global and Technip share a common view of the promising subsea market. The merger of our two companies will provide our customers with an unrivaled execution capability, combining Technip's leading, integrated subsea capabilities with Global's G1200 and G1201, complementary market presence and skills and knowhow in SLay and heavy lift.”

Blackstone Advisory Partners and Tudor, Pickering, Holt & Co. Securities Inc. are financial advisors to Technip and Davis Polk & Wardwell LLP is legal advisor. Simmons & Company International is financial advisor to Global and Vinson & Elkins LLP is legal advisor.

The deal is expected to close in early 2012.