Oil and gas giant Technip FMC to demerge as Remainco and Spinco.
New York Stock Exchange-listed Technip FMC has announced plans to separate into two publicly traded companies -- Remainco, a technology and services provider; and Spinco, an engineering and construction firm -- with the transaction to be structured as a spin-off of Technip FMC's onshore/offshore segment with headquarters in Paris, France when the separation is completed in H1 2020.
In a statement, the engineering and construction firm -- which was formed after the 2017 merger of Technip SA and FMC Technologies -- said the separation would allow both Remainco and Spinco to "unlock additional value".
Spinco, with its 15,000-strong workforce, will comprise Technip FMC's onshore/offshore segment, including Genesis, a front-end engineering and design specialist.
Cryogenic material transfer specialist Loading Systems and process automation technology firm Cybernetix, which have historically been part of Technip FMC's surface technologies and subsea businesses, will also fall under Spinco.
Technip FMC's current president of new ventures, Caterine MacGregor, will serve as chief executive officer of Spinco, with the firm to be incorporated in the Netherlands and listed on Euronext Paris, the stock exchange of its HQ.
Meanwhile, technology and services provider Remainco's 22,000 staff are expected to continue the firm's focus on being "the largest diversified pure-play in the industry".
Technip FMC's chairman and CEO, Doug Pferdehirt, and executive vice president and chief financial officer, Maryann Mannen, will continue to serve their roles at the firm after its separation.
Remainco will remain incorporated in the UK with headquarters in Houston, and be listed on both NYSE and Euronext Paris.
Commenting on the proposed transaction, Pferdehirt said: "Since the creation of Technip FMC, 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 Technip FMC 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."
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|Date:||Aug 29, 2019|
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