5th Feb 2020 17:22
(Alliance News) - Oilfield services firm John Wood Group PLC late on Wednesday said it has sold its industrial services business to technical services provider Kaefer for up to USD118 million.
The sale consideration includes an initial cash consideration of USD104 million and a further potential payment of up to circa USD14 million pending achievement of agreed financial goals.
"The divestment is another important step in Wood's portfolio rationalisation strategy and follows the planned sale of the company's nuclear business, which was announced in August 2019 and is expected to complete in first quarter 2020. Cash proceeds from the disposals will be used to reduce debt," the company said.
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."
The company'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.
John Wood shares in London closed at 382.90 pence each on Wednesday.
By Tapan Panchal; [email protected]
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