FMC TO PURCHASE KONGSBERG OFFSHORE A.S.
CHICAGO, March 2 /PRNewswire/ -- FMC Corp. (NYSE: FMC), Chicago, and Siemens AG, Berlin and Munich, Germany, today announced they have signed an exclusive letter of intent for FMC Norway a.s., a wholly owned subsidiary of FMC, to acquire Kongsberg Offshore a.s., a wholly owned subsidiary of Siemens a.s. Terms of the transaction were not disclosed. Completion of the deal is subject to approval by the Norwegian government, and the approval of a definitive agreement by the boards of directors of both companies. The transaction is targeted for completion by the end of the second quarter. According to Robert N. Burt, FMC chairman, president and chief executive officer: "Subsea systems are being recognized throughout the world as one of the fastest growing technologies, providing an economic method of oil and gas production. This acquisition will strengthen our position in this market since we can meet our customer's requests for an integrated package of engineered services, products and project management skills." He noted that FMC has had a worldwide alliance with Norway-based Kongsberg Offshore since 1987, with Kongsberg supplying electronic controls for FMC subsea wellhead and trees, which are used to control the flow of crude oil and natural gas from wells. Kongsberg Offshore was established in 1974 as a division of Kongsberg Vapenfabrikk and in 1987 was acquired by Siemens. Kongsberg Offshore is a leader in the North Sea market -- especially the Norwegian sector, which is developing the most technologically advanced subsea installations in the world. In addition to providing controls, Kongsberg provides turnkey subsea systems, including systems integration, project management and FMC subsea products, which can be marketed throughout the world. FMC and Kongsberg Offshore will continue to focus on the North Sea market, as well as expand Kongsberg's subsea systems and metering systems on a worldwide basis. FMC said it would continue to operate the Kongsberg facility in Norway and plans no major personnel changes. FMC Corp. is one of the world's leading producers of chemicals and machinery for industry, government and agriculture. The Chicago-based company reported annual sales of $4 billion in 1992, with international sales to more than 100 countries accounting for more than 45 percent of total annual revenues. FMC employs 22,000 people at 95 manufacturing facilities and mines in 18 countries. The company divides its businesses into five major segments: Industrial Chemicals, Performance Chemicals, Precious Metals, Defense Systems, and Machinery and Equipment. -0- 3/2/93 /CONTACT: Pat Brozowski, 312-861-6104; or Chuck Thomas (investor), 312-861-6678, both of FMC Corp./ (FMC)
CO: FMC Corp. ST: Illinois IN: CHM SU: TNM
PS -- NY046 -- 1870 03/02/93 10:34 EST
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|Date:||Mar 2, 1993|
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