The transaction is expected to be structured as a spin-off of TechnipFMC’s Onshore/Offshore segment to be headquartered in Paris, France. The separation is expected to be completed in the first half of 2020, subject to customary conditions, consultations and regulatory approvals.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated: “Since the creation of TechnipFMC, we have pioneered the integrated business model for subsea and transformed our clients’ project economics. To further enhance value creation, our Board of Directors and management team have continuously evaluated strategic options and, after a comprehensive review, determined that it is in the best interest of TechnipFMC and all of our stakeholders to create two diversified pure-play leaders. We are confident that the separation would allow both businesses to thrive independently within their sectors, enabling each to unlock significant additional value.”
SpinCo is expected to have approximately 15 000 employees and would comprise the Onshore/Offshore segment, including Genesis, which focuses on front end engineering and design, Loading Systems, a manufacturer of cryogenic material transfer products, and Cybernetix, which focuses on process automation, that have historically been a part of the Surface Technologies and Subsea businesses, respectively.
SpinCo will be incorporated in the Netherlands with its headquarters in Paris and listed on the Euronext Paris exchange.
With approximately 22 000 employees, RemainCo role will be to support clients in the delivery of integrated production solutions. RemainCo will remain incorporated in the United Kingdom with headquarters in Houston and listed on both the NYSE and Euronext Paris exchange.
The successful completion of the planned spin-off is subject to general market conditions, regulatory approvals and consultation of employee representatives, where applicable, and final Board approval.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/27082019/technipfmc-announces-split-into-two-publicly-traded-companies/
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