Technip to buy Global Industries

Subsea pipeline and offshore contractor Technip has agreed to buy Global Industries for US$ 1.07 billion (€ 768 million). Global Industries is a US-based company in the subsea construction and pipe laying industries, with a focus on the oil services sector.

Technip says the deal will complement its existing know-how and capacity in this segment. As well as adding 2300 employees, physical assets of Global Industries include 14 vessels, of which two are new ships for 'S-lay' subsea pipe laying - a technique that gets its name from the 'S' shape the pipe forms when being fed from ship to sea bed. Technip says Global Industries has a strong position in the Gulf of Mexico - both US and Mexican waters, Asia-Pacific and the Middle East.

Thierry Pilenko, chairman & CEO of Technip said, "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 backlog at the end of June 2011 is above the previous peak."

Technip says it expects to find US$ 30 million in savings through the merger, and that the size of the market it will be able to address in the subsea segment will grow by +30%.