Home Business News Wood Group agrees sale of nuclear business for £250m

Wood Group agrees sale of nuclear business for £250m

by LLB Reporter
20th Aug 19 1:17 pm

In a bid to cut their debt pile that John Wood Group has agreed a £250m deal to sell their nuclear arm business.

The nuclear arm which is headquartered in Aberdeen provides engineering design and maintenance for various sites in the UK.

The deal with US group Jacobs will pay Wood Group a fee of £7.5m, if the Competitions Market Authority (CMA) does not clear the transaction.

The energy company in the six months to 30 June swung into profit of $13m compared to a $52m the previous year.

This was despite there being a 2.6% drop in revenue during the period to $4.79bn, which undershot guidance it would be in line with the previous year.

Net debt of $1.77bn also missed guidance as it was to be closer to $1.6bn.

Chief financial officer David Kemp said, “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy.

“Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.”

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