USA: Company Separation Technip FMC to Split in Two Independent Companies
Technip FMC announced plans to separate into two independent, publicly traded companies. Remain Co, a fully-integrated technology and services provider for energy development and Spin Co, an engineering and construction (E&C) provider.
Houston/USA; Paris/France — By separating into two new companies, Technip wants to enhance its focus on respective markets and improve flexibility and growth opportunities. The separation is expected to be completed in the first half of 2020. The transaction is expected to be structured as a spin-off of Technip FMC’s Onshore/Offshore segment to be headquartered in Paris, France.
The 2017 merger of Technip and FMC Technologies created a subsea leader and established the company as the only fully-integrated subsea provider. At the same time, the Company’s Onshore/Offshore business has done very well. It successfully delivered landmark projects, built an unprecedented backlog, and positioned itself to continue capitalizing on growing demand for liquefied natural gas (LNG). This performance is one of the reasons for the spin-off and is to enable the two companies to unlock additional value.
With approximately 15,000 employees, Spin Co would be one of the largest E&C pure-plays and is poised to capitalize on the global energy transition. The company will be uniquely positioned to capture LNG opportunities. In addition, the new company will 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. Spin Co would also include Loading Systems, a provider of cryogenic material transfer products, and automation specialist Cybernetix, which have historically been a part of the Surface Technologies and Subsea businesses, respectively.
Catherine MacGregor, who currently serves as Technip FMC’s President, New Ventures, will serve as Chief Executive Officer of Spin Co. Bruno Vibert will serve as Chief Financial Officer, and Marco Villa will serve as Chief Operating Officer. The company will be incorporated in the Netherlands with its headquarters in Paris and listed on the Euronext Paris exchange. Bpifrance, a key shareholder of Technip FMC, announced its support for the proposed transaction.
With approximately 22,000 employees, Remain Co would be a fully-integrated technology and services provider. The company’s role will be to support clients in the delivery of integrated production solutions. The company will continue to deliver the integrated model in subsea development.
As a standalone company, Remain Co is to be the largest diversified pure-play in the industry. Doug Pferdehirt, Chairman and Chief Executive Officer, and Maryann Mannen, Executive Vice President and Chief Financial Officer of, will continue to serve in their roles following the separation. The company will remain incorporated in the United Kingdom with headquarters in Houston and listed on both the NYSE and Euronext Paris exchange.