One Equity Partners Completes Acquisition of TechnipFMC’s Measurement Solutions Business
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Insights
The completion of One Equity Partners' acquisition of TechnipFMC's Measurement Solutions business, now rebranded as Guidant, represents a strategic move within the private equity space. It is indicative of the ongoing trend of carve-outs in which larger corporations divest non-core businesses to streamline operations and focus on their primary market segments. This transaction could signal a shift in TechnipFMC's business strategy towards a more concentrated portfolio, which may be of interest to investors monitoring the company's stock (NYSE: FTI).
From a market perspective, Guidant's position as a provider of fiscal measurement technologies and automation solutions is critical in the energy sector, especially considering the increasing demand for digitalization and efficiency. The mention of manufacturing capabilities in the U.S. and Europe, coupled with a broad portfolio that includes Smith Meter®, suggests a robust competitive stance in the market. The acquisition may allow OEP to capitalize on the growing need for advanced measurement and automation systems, potentially leading to revenue growth and market expansion.
Investors should note that private equity acquisitions often aim to unlock value through operational improvements and strategic growth initiatives. OEP's acquisition of Guidant could be followed by a period of investment in product development and market penetration efforts. The impact on TechnipFMC's financials may include a streamlined balance sheet and a potential influx of capital from the sale. However, the financial terms of the deal were not disclosed, so the immediate financial impact on TechnipFMC's stock remains speculative.
Long-term benefits for OEP could include the realization of synergies between Guidant's technology and OEP's existing portfolio companies. The focus on asset optimization and remote operations is particularly relevant in the post-pandemic era, where such capabilities can drive efficiency and reduce operational costs. Stakeholders should monitor how this acquisition affects market share within the energy measurement sector and whether it leads to increased competitive pressures for incumbents.
The energy sector is undergoing a transformation with a heightened focus on efficiency and digital solutions. Guidant's rebranding and the emphasis on digital automation and cloud solutions reflect this industry shift. The mention of deployment in challenging environments such as the North Sea and Middle East underscores the technical prowess and adaptability of Guidant's offerings. As the energy industry continues to evolve with digitalization, companies like Guidant could become increasingly valuable due to their specialized services and technology.
The strategic implications for TechnipFMC and the broader energy services market should not be underestimated. As TechnipFMC divests from its Measurement Solutions business, it may be positioning itself to double down on its core offerings or pivot to new strategic initiatives. For the wider industry, this acquisition may prompt other companies to consider similar restructuring or technology investments to stay competitive in a rapidly advancing field.
Firm Concludes Latest Industrial Carve-Out
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“We are thrilled to be partnering with Guidant’s talented management team,” said J.B. Cherry, Partner at One Equity Partners. “Its creation came about through consistent collaboration between the management team, OEP’s team, and a large group of dedicated outside advisors to complete a complex corporate carve-out, involving three separate business units spread across multiple countries. The newly standalone Guidant is well-positioned to build on the significant collective, global strengths of its existing measurement platforms and to grow via transformational acquisitions.”
Guidant is led by CEO Laura Schilling, an industry veteran and the previous Senior Vice President of Surface Western Hemisphere for TechnipFMC. “Our industry is experiencing increased demand for instrumentation and automation solutions due to new regulations, fuel diversification, green energy investment, evolving data security and increasing life of assets. We are excited to partner with OEP to support our core market focus and build on our portfolio through acquisitions to deliver best measurement practices, automation and technology across a growing global platform of manufacturing, product innovation and service for our customers,” said Ms. Schilling.
The Business represents the addition of another corporate carve-out transaction to OEP’s portfolio. OEP has completed twenty-one similar transactions across its latest four funds, including eleven which operate in industrial focused end-markets. The firm seeks to be a reliable partner and trusted business steward among corporate sellers seeking to divest their operations.
About One Equity Partners
One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in
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Media
Thomas Zadvydas
Stanton
646-502-3538
Tzadvydas@stantonprm.com
Source: One Equity Partners
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