Technip to buy Shaw Group’s business for €225m

Shaw's revenues are currently around €220m.

New Statesman
The acquisiton will enhance Technip's position in refining and petrochemicals area.

The French oil service company Technip has signed an agreement to acquire Stone & Webster process technologies and the associated oil and gas engineering capabilities from The Shaw Group for approximately €225m in cash.

This acquisition will allow Technip to enhance substantially its position as a technology provider to the refining and petrochemicals industries; diversify further its onshore/offshore segment, adding revenues based on technology supply; strengthen its relationships with clients and partners worldwide, backed by the Stone & Webster reputation; expand in promising growth areas such as the US, where downstream markets will benefit from the supply of unconventional gas; and add skilled resources, notably in research in the US, and in engineering in the US, the UK and India.

Thierry Pilenko, chairman and CEO of Technip, said:

The acquisition of these world-class downstream technologies and high-quality engineering resources fits perfectly with Technip’s strategy to differentiate itself through technology. Technip becomes a major technology provider to downstream markets, adding value to its onshore/offshore segment. In addition, we gain access to promising growth areas, including US petrochemical investments driven by low-price shale gas. Furthermore, we are delighted to welcome 1,200 talented people to Technip, to support our growth and our clients needs. We continue the process of broadening Technips offering of products, services and technologies.

The acquired business generates revenues from technology licensing, process design engineering, early-stage and front-end engineering, PMC and the supply of equipment. This acquisition roughly doubles the revenues that Technip already generates from this type of activity.

The transaction, which is expected to close during the second half of 2012, is subject to customary price adjustment and closing conditions, including regulatory approvals. Barclays is acting as financial advisor to Technip and Davis Polk & Wardwell is acting as legal advisor to Technip.