Team Inc. (NYSE: TISI), a midstream company, and Furmanite Corp. (NYSE: FRM), an industrial and refinery services company, have agreed to merge in a $335 million transaction that includes stock and debt, according to Houston Business Journal. Combining with Furmanite will enable Team Inc. to double its mechanical services offerings.
Upon the merger agreement, Furmanite's CEO Joseph Milliron is retiring, effective immediately. He will continue to serve as a member of the company's board of directors. Additionally, Ted Owen, CEO of Team, will serve as CEO of the combined company. Jeffrey Davis, Furmanite's interim executive chairman of the board, will assume additional responsibilities as interim president and CEO. Upon the closing of the merger, he will join Team's board of directors.
In July, Team Inc. acquired inspection firm Qualspec Group in an all-stock transaction.
Financial advisers and consultants for Team in the transaction are Robert W. Baird & Co. Inc. and Anthony Riker LLC, respectively. Locke Lord LLP serves as Team's legal counsel. Lazard Freres & Co. is acting as financial adviser to Furmanite and Wachtell, Lipton Rosen & Katz is acting as legal counsel.