TechnipFMC, a leading engineering and construction (E&C) firm, announced today that its board of directors has approved a demerger that will create two independent, publicly traded companies. Announcing the split, TechnipFMC said the pure-plays will enable both companies to capitalize on distinctive markets and growth opportunities.
Tentatively named RemainCo, a fully integrated technology and services provider, the company will continue to drive energy development while SpinCo, a leading E&C player, is poised to capitalize on the global energy transition. The separation would enhance both RemainCo’s and SpinCo’s focus on their respective strategies and provide improved flexibility and growth opportunities, TechnipFMC says.
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, at which time all outstanding shares of SpinCo will be distributed to existing TechnipFMC shareholders.
In its guidance for 2019, TechnipFMC says RemainCo will have an estimated revenue of $7 billion and a backlog of work of $10 billion. SpinCo’s revenue for 2019 are put at $6 billion and backlog at $19 billion. TechnipFMC is the global leading provider of ethylene technology.
The 2017 merger of Technip and FMC Technologies established TechnipFMC as the only fully integrated subsea E&C provider, the company says. The business has consistently delivered landmark projects, built an unprecedented backlog, and positioned itself to continue capitalizing on growing demand for liquefied natural gas (LNG), the company says.
With approximately 15,000 employees, SpinCo would be one of the largest E&C pure-plays and is poised to capitalize on the global energy transition. It will be positioned to capture LNG opportunities; benefit from growth in biofuels, green chemistry, and energy alternatives; and have a strong position in the downstream market. The company would comprise the onshore/offshore segment, including front-end engineering and design shop Genesis. SpinCo would also include Loading Systems, a major supplier of material transfer products, and process automation business Cybernetix, which have historically been a part of the surface technologies and subsea businesses, respectively.
Catherine MacGregor, who currently serves as TechnipFMC’s president/new ventures, will serve as CEO of SpinCo. Bruno Vibert will serve as CFO, and Marco Villa will serve as COO. SpinCo will be incorporated in the Netherlands with its headquarters in Paris and listed on the Euronext Paris exchange. Bpifrance, a key shareholder of TechnipFMC, strongly supports the proposed split, the company says.
RemainCo will have approximately 22,000 employees and will be a fully integrated technology and services provider, continuing to drive energy development. Doug Pferdehirt, chairman and CEO of TechnipFMC, and Maryann Mannen, executive vice president and CFO of TechnipFMC, will continue to serve in their roles following the separation. RemainCo will remain incorporated in the UK with headquarters in Houston and listed on both the NYSE and Euronext Paris exchange.
“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,” said Doug Pferdehirt, chairman and CEO of TechnipFMC.
By Natasha Alperowicz
Source: Chemical Week
Synthomer announced the appointment of Lily Liu as Chief Financial Officer (CFO). Lily will take up the role no later than 1 July 2022, succeeding Steve Bennett who announced in August 2021 that he would step down once a suitable successor was in place.
Westlake Chemical (Houston, Texas) has reached agreement to acquire Hexion’s (Columbus, Ohio) epoxy business for approximately $1.2 billion. Westlake says the deal enhances chlorine and olefins integration and brings attractive opportunities in high-growth epoxy markets, including wind turbine blades, automotive lightweighting, aerospace and consumer coating applications.
Tetra Pak Iberia is launching a gamified app experience in partnership with digital studio Appetite Creative. The technology is enabled though scannable QR codes printed on drinking cartons and available to all brands in Southern Europe.