Wood Announces Sale of Built Environment Business for $1.9 Billion

Wednesday, June 1, 2022

John Wood Group PLC announced it has signed an agreement for the sale of its Built Environment consulting business (Built Environment Consulting) to WSP Global Inc. (WSP) for gross proceeds of approximately $1.9 billion.

Transaction highlights

• Agreement to sell Built Environment Consulting to WSP for gross proceeds of approximately $1.9 billion and a total enterprise value of $1.81 billion
• Consideration implies an EV/EBITDA multiple of 16x based on FY21 pro forma pre-IFRS 16 adjusted EBITDA for Built Environment Consulting including expected standalone costs (see note 1 on page 3)
• Expected transaction costs of around $50 million and expected cash tax costs of around $60 million
• Net cash proceeds would result in a pro forma net cash position at 31 December 2021, compared to net debt/EBITDA of 3.3x as previously reported
• Divestment provides enhanced financial flexibility which will allow the Group to consider further options on the use of proceeds. These include measures to improve the future sustainable cash flow of the ongoing Group through the removal of certain liabilities, investment to accelerate our strategy; and shareholder returns, for example through the restoration of an ordinary dividend
• The transaction is subject to various conditions, including Wood shareholder approval and certain regulatory approvals
• Class 1 circular and notice of General Meeting to be published in due course
• Completion expected in the second half of 2022
• Sale will significantly reduce the Group’s leverage and help us accelerate our strategy to be a leader across energy security and sustainability

Robin Watson, Chief Executive, said: “We are very pleased to have agreed this sale with WSP. 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 Officer of 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”.

« GO BACK

You may also like

" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">

First LNG Realized at the Greater Tortue Ahmeyim Project

" alt="United Energy Acquires Western Desert Producer APEX">

United Energy Acquires Western Desert Producer APEX

" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">

Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG

" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">

ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System

" alt="Tullow Highlights 2025 Operational Plans in Ghana">

Tullow Highlights 2025 Operational Plans in Ghana

" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">

TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years

" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">

Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession

" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">

Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market