Released August 02, 2012 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Technip S.A. (OTC:TNHPF) (Paris, France), a leading company in engineering, construction and project management for the energy industry, entered into an agreement in May to acquire the energy and chemicals business of The Shaw Group Incorporated (NYSE:SHAW) (Baton Rouge, Louisiana) for about $300 million in cash consideration. Technip says the acquisition will diversify its onshore/offshore business and strengthen the company's position as a technology provider to the refining and petrochemicals industries.
Earlier this week, Shaw announced a definitive agreement to be acquired by Chicago Bridge & Iron Company (NYSE:CBI) (CB&I) (The Woodlands, Texas) in a cash and stock transaction valued at roughly $3 billion. The deal, still subject to regulatory approvals, as well as approval from the shareholders of both companies, is expected to close in the first quarter of 2013. For more information, see July 31, 2012, article - Chicago Bridge & Iron to Acquire Shaw Group in $3 Billion Deal.
Technip's acquisition, which includes Shaw division Stone & Webster Incorporated's process technologies, as well as associated oil and gas engineering capabilities, is expected to be completed during the second half of 2012. It is subject to customary price adjustment and closing conditions, including regulatory approvals. Technip executives say that if the deal is approved, it would double the revenues that Technip receives from technology licensing, process design engineering, early-stage and front-end engineering, and equipment supply. However, Shaw will keep any legacy engineering, procurement and construction contracts, as well as some sites.
Industrial Info is tracking about $95 billion in active projects worldwide involving Technip, including the $500 million construction of a grassroot deepwater offshore pipeline that is 60 miles southwest of Port Fourchon, Louisiana. The construction is part of the Walker Ridge pipeline project, which involves installing 165 miles of pipeline at depths of 7,000 feet to transport up to 100,000 million standard cubic feet per day of natural gas from the Eugene Island Oilfield Production Platform to Enbridge Energy Partners LP's (NYSE:EEP) (Calgary, Alberta) existing Manta Ray and Nautilus pipeline systems. Technip is serving as general contractor on the project for Enbridge.
"The acquisition of these world-class downstream technologies and high-quality engineering resources is a perfect fit to Technip's strategy to differentiate ourselves through technology," said Thierry Pilenko, the chairman and chief executive officer of Technip, in a conference call. "This will make Technip a major technology provider to downstream markets, adding to our Onshore/Offshore segment."
He later added: "[Stone & Webster] possesses important and widely recognized best-in-class proprietary technologies and alliances. These technologies are particularly strong in refining ethylene, petrochemicals and gas-to-liquids."
Technip will bring on board about 1,200 Stone & Webster employees who operate from five main locations: Houston, Texas; Cambridge, Massachusetts; Weymouth, Massachusetts; Milton Keynes, England; and Mumbai, India.
View Project Report - 200003984
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Earlier this week, Shaw announced a definitive agreement to be acquired by Chicago Bridge & Iron Company (NYSE:CBI) (CB&I) (The Woodlands, Texas) in a cash and stock transaction valued at roughly $3 billion. The deal, still subject to regulatory approvals, as well as approval from the shareholders of both companies, is expected to close in the first quarter of 2013. For more information, see July 31, 2012, article - Chicago Bridge & Iron to Acquire Shaw Group in $3 Billion Deal.
Technip's acquisition, which includes Shaw division Stone & Webster Incorporated's process technologies, as well as associated oil and gas engineering capabilities, is expected to be completed during the second half of 2012. It is subject to customary price adjustment and closing conditions, including regulatory approvals. Technip executives say that if the deal is approved, it would double the revenues that Technip receives from technology licensing, process design engineering, early-stage and front-end engineering, and equipment supply. However, Shaw will keep any legacy engineering, procurement and construction contracts, as well as some sites.
Industrial Info is tracking about $95 billion in active projects worldwide involving Technip, including the $500 million construction of a grassroot deepwater offshore pipeline that is 60 miles southwest of Port Fourchon, Louisiana. The construction is part of the Walker Ridge pipeline project, which involves installing 165 miles of pipeline at depths of 7,000 feet to transport up to 100,000 million standard cubic feet per day of natural gas from the Eugene Island Oilfield Production Platform to Enbridge Energy Partners LP's (NYSE:EEP) (Calgary, Alberta) existing Manta Ray and Nautilus pipeline systems. Technip is serving as general contractor on the project for Enbridge.
"The acquisition of these world-class downstream technologies and high-quality engineering resources is a perfect fit to Technip's strategy to differentiate ourselves through technology," said Thierry Pilenko, the chairman and chief executive officer of Technip, in a conference call. "This will make Technip a major technology provider to downstream markets, adding to our Onshore/Offshore segment."
He later added: "[Stone & Webster] possesses important and widely recognized best-in-class proprietary technologies and alliances. These technologies are particularly strong in refining ethylene, petrochemicals and gas-to-liquids."
Technip will bring on board about 1,200 Stone & Webster employees who operate from five main locations: Houston, Texas; Cambridge, Massachusetts; Weymouth, Massachusetts; Milton Keynes, England; and Mumbai, India.
View Project Report - 200003984
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
