Acergy and Subsea 7 to mergeNews // June 21, 2010
Acergy SA and Subsea 7 Inc have announced that their Boards of Directors have agreed to combine the two companies.
The transaction will create a combined entity with:
• A market value of US$5.4 billion and a global organisation of 12,000 people
• The capability and resources to address the worldwide growth in size and complexity of subsea projects
• Enhanced local presence in all major offshore oil and gas regions
• The full spectrum of subsea services – SURF, Conventional and Life-of-Field, a high-end diversified fleet and extensive fabrication and onshore facilities
• Expected annual synergies of at least US$100 million
• A backlog of US$5.3 billion with a complementary mix by contract type and geographical region as at May 31, 2010.
In a statement, the companies aid the combination is based on an agreed ratio between the equity value of Acergy and Subsea 7 of 54:46 (Acergy:Subsea 7).
Subsea 7’s shareholders are to receive 1.065 Acergy common shares for every Subsea 7 common share.
The Board will have a majority of independent directors and be chaired by Subsea 7’s current Chairman, Kristian Siem.
The new entity, to be named Subsea 7, will be led by a highly experienced executive management team comprising: Chief Executive Officer, Jean Cahuzac; Chief Operating Officer, John Evans; and Chief Financial Officer, Simon Crowe.
Completion is anticipated towards the end of this year or the first quarter of 2011, subject to shareholder approval, regulatory approvals and other customary completion conditions.
The Board of Directors of both companies have unanimously agreed to recommend the combination to their respective shareholders.