Technip (NYSE Euronext Paris: TEC) announced today the completion of the Stone & Webster process technologies and associated oil and gas engineering capabilities acquisition.
This transaction, which was originally announced on May 21, 2012, creates a world-class downstream technology leader and will enable Technip to:
•Enhance substantially its position as a technology provider to the refining and petrochemicals industries,
•Diversify further its Onshore/Offshore segment, adding revenues based on technology supply,
•Strengthen its relationships with clients worldwide, backed by the Stone & Webster reputation,
•Expand in promising growth areas such as the US, where downstream markets will benefit from the supply of unconventional gas,
•Add skilled resources, notably in research in the US, and engineering in the US, the UK and India.
To make the most of these strengths, a new business unit, Technip Stone & Webster Process Technology, will be developed within the Onshore/Offshore segment.
Thierry Pilenko, Chairman and CEO, commented:
“I am delighted to welcome a high-skilled team into the Technip family. By combining our talents, strong portfolios and leading edge execution capabilities, we will further differentiate ourselves through first-class downstream technologies, offer unique products and services, and deliver greater value for both our customers and shareholders.”
Technip paid cash consideration of around €225 million from existing cash resources, which will be subject to customary price adjustments.
As previously stated, there will be no material impact on 2012 full year revenues and operating income with unchanged estimates in transaction and integration costs. Looking forward, the acquired business should generate margins above those of the Onshore/Offshore segment, while having a more robust and lower risk earnings profile.
Technip completes acquisition of Stone & Webster process technologies