Wood Group to acquire rival Amec Foster Wheeler for £2.2bn

Mon, 13 Mar 2017 | MERGER

Aberdeen-based oilfield services firm Wood Group is to buy its rival Amec Foster Wheeler for £2.2 billion as the energy industry battles oil price volatility.

In a statement Wood Group said it had offered 0.75 of new shares for each Amec Foster Wheeler share, valuing each Amec share at £5.64.

Wood Group said the takeover represented an opportunity for “cost and revenue synergies”. The firm hopes to slash £110 million in costs from the combined business.

Shares in both companies climbed as news of the deal broke.

The deal marks a trend of energy firms partnering up as they tackle weak activity and low oil prices. Amec’s 2016 revenues fell eight per cent to £5.4 billion; Wood Group’s 16 per cent to $4.9 billion.

Under the deal, Amec shareholders will own 44 per cent of the new business. Wood Group’s management team - chief executive Robin Watson, finance chief David Kemp, chairman Ian Marchant - are to stay on in their roles.

"The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions and broadens our end market, geographic and customer exposure,” Ian Marchant said.

"Delivering significant sustainable synergies will also result in a leaner and more competitive combined group, creating value for shareholders."


Share this article



Latest Businesses for Sale

E-Cigarette Retailer
Lichfield, Staffordshire, UK Wide

This is a perfect opportunity to take on a well-established vape business with three busy premises that are all brimming with stock. Appealing to a current owner-operator of an e-cigarette related business or an entrepreneur passionate about the indu...

Asking Price: Offers Invited
Turnover: £300,000

LEASEHOLD


Vape Retailer & Lounge
Nuneaton, Warwickshire, UK Wide

Brilliant twofold business, which boasts a well-fitted premises, central location and solid customer base. Professional service and high quality products have helped to grow this business into the successful venture it is today. Current owner willing...

Asking Price: £140,000
Turnover: £300,000

LEASEHOLD


Multi Brand Electronic Cigarette Retailer
Ashton-under-Lyne, Manchester, UK Wide

Profitable E-Cigarette retailer in a fast growing industry. Enjoys reputation for multi-branded E-cigarette retailer. Business is immaculately fitted to an exceptional standard. Currently operated under management with minimal owner involvement. Offe...

Asking Price: £125,000
Turnover: £416,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
13
 
Nov
 

Intermet Refractories completes MBO deal | MBO/MBI

Intermet Refractories, a metal casting component manufacture...

 
10
 
Nov
 

BT to sell off its fleet division | DIVISION SALE

BT Group is preparing to sell its fleet management arm encom...

 
08
 
Nov
 

Open Cell to merge with Stratto | MERGER

Global investment firm, Digital Colony has acquired Open Cel...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
30
 
May
 

Proposed sale of Amec oil and gas to make way for merger | MERGER

Wood Group has put the majority of Amec Foster Wheeler'...

 
29
 
Jul
 

Real estate fund closes in on Pinewood Studios purchase | BUSINESS SALE

Pinewood Group, the company behind Pinewood Studios, is on t...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources