Wood finalises sale terms for industrial services business
11 Feb 2020
John Wood Group is selling its industrial services business to technical services provider, Kaefer, for c $104 million.
The firm said there could be a further potential payment of up to $14 million “pending achievement of agreed financial goals”.
The move follows the planned sale of the company’s nuclear business, expected to complete in Q1 2020. Proceeds from the disposals will be used to reduce debt.
David Kemp, Wood’s chief financial officer said: “The sale of our industrial services business is the latest divestment aimed at maintaining our strong balance sheet and achieving our target leverage.
“As our focus has moved towards building a premium, differentiated and higher-margin business, the industrial services offering is no longer core to our strategy. However, it is an excellent fit with Kaefer who see a clear opportunity to grow the business further and extend its market share across new sectors and geographies.”
Wood’s industrial services business provides integrity and fabric maintenance for assets in the marine, process energy, offshore oil & gas and infrastructure sectors across the UK and Ireland. In 2018, the pre-tax profits for this was $8m, with gross assets at year-end amounted to $105 million.