Acergy S.A. and Subsea 7 Inc. 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 $5.4 billion(1) 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 $100 million
- A backlog of $5.3 billion (2) with a complementary mix by contract type and geographical region as at May 31, 2010
Combination structure and terms
- 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 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
