3rd Dec 2015 07:36
LONDON (Alliance News) - Oil services company John Wood Group PLC Thursday said it has struck a deal to acquire a family-owned contractor in Texas for up to USD192.0 million.
The Infinity Group is an industrial construction and maintenance contractor serving the petrochemical, refining and gas processing sectors and has seven locations along the Texas Gulf coast.
Wood Group has paid an initial USD150.0 million, with further payments possible in the future.
Infinity provides a range of services including mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services.
The existing management will remain in place to manage the company's 2,500 employees. Currently, Infinity has gross assets worth around USD92.0 million and is forecast to generate earnings before interest, tax, depreciation and amortisation of USD26.0 million in 2015.
Infinity will work with Wood Group's PSN Americas business unit to create a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and liquefied natural gas sectors, said Wood Group.
Infinity will also work with Wood Group's Mustang division to provide an opportunity for Mustang to offer a turnkey design and construction offering to the industrial sector, it added.
On top of the initial USD150.0 million in cash, Wood Group said a further cash amount "may" be payable dependent on the future performance of Infinity. Based on Infinity maintaining its current financial performance, Wood Group will pay a total of USD176.0 million and said the deal will not exceed USD192.0 million.
Further details concerning the future payments were not released.
By Joshua Warner; [email protected]; @JoshAlliance
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