TechnipFMC Spin-off Notes

January 14, 2020 – Update

  • TechnipFMC (FTI) announced that it is will proceed with the spin off that had been previously delayed.
  • The Spinco will be an engineering and construction company focused on the liquid natural gas market (they construct liquid natural gas floating processing facilities both onshore and floating).
    • It generates ~$6BN of sales.
  • Remainco will be a offshore oil and gas services provider.
    • It currently generates $7BN of sales.
  • This transaction isn’t too interesting to me for a couple reasons:
    • 1) both businesses have pretty low margins