Nov. 2, 2015, 10:59 AM
- Midstream company Team Inc. (TISI +0.9%) agrees to acquire Furmanite (FRM +6.2%) for $335M in cash and stock, in a deal that will double Team's mechanical services capabilities and bring the combined company's locations to 220 worldwide.
- The companies say the merger should bring in $20M-$25M in annual cost synergies within two years of closing; before synergies, Team expects the transaction to contribute ~$400M/year in revenue and $38M in annual adjusted EBITDA.
- FRM President/CEO Joseph Milliron will retire immediately as part of the acquisition but remain for now on the FRM board; the new interim CEO is FRM Executive Chairman Jeffery Davis, who recently was named to the board as part of a proxy battle.
Furmanite Corp together with its subsidiaries provides technical services, including leak sealing & hot tapping under pressure, on-site machining, heat treatment, heat exchanger repair & manufacture, concrete repair, bolting, valve testing & repair.
Industry: Technical Services
Country: United States