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

Printed Packaging Manufacturer
London, South East, UK

Long established with strong brand identity. High Levels of repeat business. Continually expanding customer base. Offers invited.

Asking Price: Offers Invited
Turnover: £847,000

Industrial & Elevator Door Engineering
South of England, UK Wide

Very High profile customer base. Framework agreement with world's leading elevator manufacturer. Outstanding track record . Exciting expansion opportunity. Offers invited.

Asking Price: Offers Invited
Turnover: £925,000

Automotive Development & Tuning Business (Fast Sale)
UK Wide

For Further Information: All enquires including requests for a non-disclosure agreement (NDA), should be directed to the below together with Your Name, Registered Company Name and Contact Number: Unconditional offers together with proof of funds to b...

Asking Price: Offers Invited
Turnover: £445,000


View more businesses for sale

News Search

Latest News

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

 
17
 
Jan
 

Fine paper business enters administration | ADMINISTRATION

Arjowiggins UK, which operates a number of trading companies...

 
15
 
Jan
 

Hawk Plant enters administration | ADMINISTRATION

The Shropshire company, that has previously undertaken landm...

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