FMC Technologies Ups Stake in CDS
FMC Technologies, Inc has increased its ownership stake in CDS Engineering BV. The Company has amended its Sale and Purchase Agreement with minority shareholders of CDS, increasing FMC Technologies' ownership stake in CDS from 50 percent to 91 percent. The Company made an initial payment of $40 million to acquire the increased ownership, and has a future commitment in 2009 and 2011 based partially on performance.
FMC Technologies purchased a majority ownership of CDS Engineering in August of 2003. The Company previously committed to purchase the remaining minority percentage in 2009 based on an approximate multiple of 6.5 times the average earnings before interest, taxes, depreciation and amortization (EBITDA) of 2007 and 2008. The amended agreement accelerates the purchase at approximately the same multiple of EBITDA as originally agreed.
"We are excited about the future growth opportunities in subsea separation, and CDS is a critical element of our subsea processing technologies," said Peter Kinnear, President and CEO, FMC Technologies. "Greater participation in CDS processing technologies combined with our subsea business will allow us to enhance our technology leadership in subsea separation."
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. 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.
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Company: CDS Engineering BV more info
- FMC Takes Complete Ownership of CDS Engineering (Dec 20)
- FMC Technologies Ups Stake in CDS (Apr 04)