Technip has announced that it will acquire US-based subsea construction and pipelay company Global Industries in a cash deal worth USD 1.07 billion. The deal will see Technip pay USD 8 per Global Industries Share and take on about USD 136 million of debt, in a deal funded through existing cash balances and credit facilities.

Expected to close in 2012, Technip said the deal would add between 5% and 7% to its earnings in 2013 due to cost savings and the combined company’s expanded reach to new customers. Cost synergies were expected to be about USD 30 million. Technip said the merger would help it broaden its business, expanding its addressasble market by about 30% and increasing the size of its fleet from 20 vessels to 34 vessels.