TechnipFMC to Split, Spinning Off Onshore, Offshore Segments
During a conference call on the TechnipFMC split Monday afternoon, chairman of the board and CEO Douglas J. Pferdehirt said “There are very few synergies between upstream and downstream. We are seeing the beginning of a shaping of our industry. We believe that what we are creating, others will follow. “
“When you over-integrate, the customer can see you as greedy. We integrate where it clearly adds value to the customer.”
When asked about the timing of the spinoff, Pferdehirt said “Timing needs to be a function of the business environment, markets we serve, and leadership. These three came together now. It looks like there could be no better time than now.”
LONDON – TechnipFMC announced its board of directors has unanimously approved its plan to separate into two independent, publicly traded companies: RemainCo, a fully-integrated technology and services provider, continuing to drive energy development; and SpinCo, a leading engineering and construction player, poised to capitalize on the global energy transition.
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.
Doug Pferdehirt, chairman and CEO of TechnipFMC, stated, “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.”