John Wood Group is selling two businesses for $165 million as part of a plan to dispose of non-core assets.

The Aberdeen-based company and joint venture partner Siemens Energy are selling rotating equipment business Ethos Energy Group to private equity firm One Equity Partners.

Ethos Energy employs c.3,600 people globally and contributed $34m of adjusted EBITDA to Wood’s results in 2023, with no revenue recognised in Wood’s results.

Wood is also selling CEC Controls Company Inc, an industrial and process control systems business in the automotive market to SCIO Automation Group, for $30m cash. SCIO Automation Group is a Germany-based global industrial automation company and the deal, which is subject to approvals as well as other typical closing conditions, is expected to close later in 2024.

CEC Controls employs c.220 people globally and is headquartered in Michigan, US. The business generated $66m of revenue and $6m of adjusted EBITDA in 2023.

Combined, these two businesses contributed $41m to Wood’s adjusted EBITDA in 2023 and the sales are consistent with a previously announced disposal programme of non-core businesses.

Wood expects net cash proceeds of around $125m from these latest sales when they complete later this year. In addition, Wood will be issued loan notes by EthosEnergy which, on repayment around five years after completion, will generate further proceeds of up to $42m plus interest.

Jennifer Richmond, Wood’s chief strategy officer, said: “The sale of these two non-core businesses is further evidence of progress of our strategy.

“We continue to review Wood’s portfolio in line with our strategic priorities to be selective in our markets and capabilities and steadfast in our commitment to simplify Wood and deliver greater cash flexibility.

“There is a strong strategic fit between both these companies and their buyers, and we are confident both businesses will thrive under new ownership.”