Wood offloads built environment division for $1.9bn
John Wood Group has sold its Built Environment Consulting business to WSP Global for gross sum of $1.9 billion. The total enterprise value is $1.81bn.
Aberdeen-based Wood said the sale provides “enhanced financial flexibility” which will allow it to consider further options on the use of proceeds.
These include restoring the dividend and providing cash flow through the removal of certain liabilities.
Completion is expected in the second half of this year.
Robin Watson, Wood’s outgoing chief executive, said: “This transaction will deliver significant value for our shareholders and marks a new chapter for Wood.
“It enables us to move onto our next strategic phase with the financial flexibility to accelerate our strategy to capture the growth opportunities ahead across both energy security and sustainability.
“We are focused now on the steps to complete this deal and in further developing our strategy, which we will outline in detail at a capital markets day, when my successor as chief executive is in place”.
Alexandre L’Heureux, president and chief executive at WSP, said: “The addition of the Built Environment Consulting business will allow us to expand our Earth and Environment leadership across our key markets and geographies.
“We share a common purpose of making the world a better place and our united forces will only further our expertise to create a more sustainable and resilient world”.