TechnipFMC has said it plans to separate into two independent, publicly traded companies – RemainCo and SpinCo.
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.
SpinCo
With approximately 15,000 employees, SpinCo would be one of the largest E&C pure-plays and is poised to capitalize on the global energy transition. According to TechnipFMC, SpinCo will be positioned to capture LNG opportunities, benefit from its position in the downstream market, as well as future growth opportunities in biofuels, green chemistry and other energy alternatives. The company would comprise the Onshore/Offshore segment, including Genesis – a front end engineering and design company. SpinCo would also include Loading Systems, and Cybernetix that have historically been a part of the Surface Technologies and Subsea businesses, respectively.
SpinCo will be led by Catherine MacGregor, who currently serves as TechnipFMC’s president, New Ventures. Bruno Vibert will serve as chief financial officer, and Marco Villa will serve as chief operating officer. SpinCo will be incorporated in the Netherlands with its headquarters in Paris and listed on the Euronext Paris exchange.
RemainCo
With approximately 22,000 employees, RemainCo would be a fully-integrated technology and services provider, continuing to drive energy development. The company’s role will be to support clients in the delivery of integrated production solutions. RemainCo will apply the same integrated model in Subsea to Surface Technologies, TechnipFMC said.
As a standalone company, TechnipFMC said that RemainCo will be the largest diversified pure-play in the industry. Doug Pferdehirt, chairman and CEO of TechnipFMC, and Maryann Mannen, executive vice president and CFO of TechnipFMC, will continue to serve in their roles following the separation. RemainCo will remain incorporated in the United Kingdom with headquarters in Houston and listed on both the NYSE and Euronext Paris exchange.
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.”