Global Industries acquires ETPM

Global Industries, Ltd. announced that it had signed a definitive purchase agreement to acquire ETPM, SA, a leading international offshore construction company wholly-owned by Groupe GTM, the construction affiliate of French utility Suez Lyonnaise des Eaux.
The combined company will be the largest offshore construction company in market capitalisation with combined 1998 revenues of approximately $ 1.3 bn.
ETPM provides a full range of turnkey services, including design, procurement, fabrication, installation and commissioning of offshore platforms and pipelines. ETPM will be combined with Global's current international operations to create a new International Division. Pierre Laborie, ETPM's current President and COO, will head the new division.
Under the terms of the transaction, Global will pay Groupe GTM $ 265 mm in cash for the outstanding stock of ETPM and enter into a lease purchase of Groupe GTM's interest in two vessels providing for annual fees and a purchase of such interestin January 2002 for $ 25 mm. In addition, Global will assume ETPM's liabilities (approximately $ 2 mm in debt and capital lease obligations as of June 30, 1999). The transaction is expected to close in September and will be accounted for as a purchase. ETPM reported $ 65 mm of EBITDA for the year ended December 31, 1998.

William J. Dore, Chairman and CEO, said: "This is an extremely significant acquisition for Global because it strengthens our deepwater position by doubling our dynamically-positioned fleet from three to six vessels and by positioning us as a leader in FPSO technology and development. This transaction also provides us with cutting-edge automatic welding technology, which is critical in pipelay productivity, and extends Global's presence to all the major offshore construction markets world-wide."
"Ultimately, the acquisition provides us with a larger high-quality asset base, an expanded customer base, and valuable expertise in executing large turnkey projects, thereby supporting our long-term strategy." Global will finance the acquisition with a combination of a new senior credit facility being provided by Banc One and short-term bridge financing of $ 200 mm being provided by Morgan Stanley Dean Witter.
Global intends to file a registration statement with the U.S. Securities and Exchange Commission for the sale of $ 175 to $ 200 mm in common stock to repay the bridge financing incurred in connection with the acquisition. The equity offering is expected to be completed in the fourth quarter of this year. Morgan Stanley Dean Witter acted as Global's financial advisor. Vinson & Elkins, L.L.P. acted as legal advisor.

Global Industries provides pipeline construction, platform installation and removal, and diving services to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India and Mexico's Bay of Campeche.