Global Industries brings to Technip its complementary subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels, including two newly-built leading edge S-Lay vessels, as well as strong positions in the Gulf of Mexico (US and Mexican waters), Asia-Pacific and the Middle East.

Technip says that the acquisition of Global Industries reinforces its position leadership in the fast-growing subsea market. The acquisition will substantially increase Technip’s current capabilities and expand its addressable market by around 30% in deep-to-shore subsea infrastructure. Cost synergies are estimated to be at least US$30 million.

Given the anticipated synergies, the transaction is expected to be accretive to Technip's earnings per share by around 5 to 7% in 2013. The transaction is expected to close early in 2012. The management teams of Global Industries and Technip will work closely together to define the integration plan.

The acquisition of Global Industries reinforces Technip's leadership in Subsea, one of our three market segments alongside Onshore and Offshore. The subsea market looks likely in 2011 to show a record amount of orders for our industry and our own backlog at end-June 2011 is above its previous peak. We see that our customers continue to firm up a substantial number of large offshore developments with Brazil, the Gulf of Mexico, West Africa and Asia Pacific leading the way to drive future growth. Our investment in Global Industries substantially expands our addressable market in subsea.

—Thierry Pilenko, Chairman and CEO of Technip

Technip operates a vertically integrated business covering multiple levels of the value chain from upstream field engineering, through project management, proprietary technology, flexible and umbilical manufacturing, and flexible-lay, rigid reel-lay and subsea construction vessels. The acquisition will enable Technip to increase its revenue and profits in this growing market.