Wood Sells Industrial Services Business
John Wood Group PLC today announced the sale of its industrial services business to technical services provider Kaefer for an initial cash consideration of about $104 million and a further potential payment of up to around $14 million pending achievement of agreed financial goals.
This arm of the company provides integrity and fabric maintenance for assets in the offshore oil and gas, process energy, marine, and infrastructure sectors across the UK and Ireland. It describes its core services as ranging from scaffolding, rope access, thermal insulation, and industrial painting through to electrical, control, and instrumentation expertise.
This divestment is part of Wood’s portfolio strategy and follows the sale of its nuclear business announced last August and expected to close in Q1 this year.
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.”
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