FMC Technologies Will Acquire 45% of Schilling Robotics for $116 Million
HOUSTON & DAVIS, Calif.--(BUSINESS WIRE)--FMC Technologies, Inc. (NYSE:FTI) and Schilling Robotics announced today that they have entered into a definitive agreement whereby FMC Technologies will acquire a 45% interest in Schilling Robotics LLC for $116 million in a transaction expected to close no later than December 31, 2008. The acquisition is expected to be accretive to FMC Technologies’ earnings per share in 2009.
The acquisition partners two companies whose innovative technologies enable subsea energy production worldwide. FMC Technologies is the leading manufacturer and supplier of subsea production systems. Schilling Robotics is a leading producer of ROVs (remotely operated vehicles), ROV manipulator systems, control systems, and other high-technology equipment and services for oil and gas subsea exploration and production.
FMC Technologies Chairman, President and CEO Peter D. Kinnear said, “This is a unique and exciting opportunity to expand our subsea business in a new direction. Our global subsea franchise will assist Schilling Robotics in extending its reach worldwide and better position it to serve its customers. Additionally, the relationship will allow FMC to participate more fully in the increasing integration of remote activities performed on the seabed such as subsea processing, well intervention and production optimization.”
Schilling Robotics Chairman Tyler Schilling commented on the strategic implications for Schilling, “Our partnership with FMC is a logical outcome of the growth trajectory we have been on for many years. FMC understands and endorses our strategy to introduce innovative digital technologies in response to the growing communications and control challenges facing our customers in the subsea environment. In the last few years we have undertaken numerous initiatives that expand our participation in this major market.”
In addition to its expected purchase of 45% of Schilling by year end, FMC Technologies is acquiring the rights to exercise an option over the two-year period beginning in 2012 to acquire the remaining 55% of the company.
FMC Technologies, Inc. (NYSE:FTI) is a leading global provider of technology solutions for the energy industry. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. Named by FORTUNE Magazine as America's Most Admired Oil and Gas Equipment, Service Company in 2005, 2006 and 2008, FMC Technologies has approximately 10,000 employees and operates 23 manufacturing facilities in 19 countries. For more information visit www.fmctechnologies.com.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and may be modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
Schilling Robotics, a global, deep-ocean robotics company, was founded in 1985. Its customers include offshore oilfield equipment and service providers such as Acergy UK Ltd, Bourbon Subsea Services, Expro North Sea Ltd, and Oceaneering International. Schilling is headquartered in Davis, California and has regional offices in Houston, Texas and Aberdeen Scotland, with a total staff of more than 300. Further information about Schilling Robotics can be found at www.schilling.com. The Schilling Business Diary includes information about Schilling, the ROV industry, and emerging technology in offshore exploration.
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