25th Jul 2025 09:05
(Alliance News) - John Wood Group PLC on Friday said it has agreed to sell its 50% stake in RWG Repair & Overhauls Ltd to joint venture partner Siemens Energy AG for USD135 million in cash, as part of the oil field services company's drive to pay down its debt.
RWG Repair & Overhauls provides repair and overhaul services to operators of industrial aero-derivative gas turbines in the oil and gas, power generation and marine propulsion industries.
John Wood subsidiary JWG Investments Ltd will sell its 50% interest to Siemens Energy subsidiary Siemens Energy Global GmbH & Co KG. The sale price values RWG at 6.6 times adjusted earnings before interest and tax and at 7.8 times the cash contribution that the joint venture makes to John Wood.
The deal is expected to close in late 2025 or early 2026.
The sale is a "significant milestone", John Wood Chief Executive Officer Ken Gilmartin said. "As previously announced, our disposal programme of non-core businesses is part of our strategy to simplify Wood and help mitigate the impact of negative free cash flow in the year." The company had USD690 million in net debt as of December 31 and average net debt of USD1.1 billion in 2024.
John Wood in mid-February said it would target USD150 million to USD200 million in disposal proceeds in 2025. Back in April, it agreed the sale of US civil construction services business Kelchner Inc for around USD30 million. In 2024, it sold its 51% stake in EthosEnergy Ltd and also sold CEC Controls Co Inc.
John Wood shares have been suspended from trading London since the end of April, having failed to file its 2024 accounts on time. Siemens Energy shares were down 1.2% to EUR95.98 in Frankfurt on Friday morning.
By Tom Waite, Alliance News editor
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