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

Commercial & Residential Scaffolding (Fast Sale)
South East, UK

A sale will be executed at the earliest opportunity with offers received by Friday 10th July 2020. Long‐established (c.15 years), regionally‐based, commercial and residential scaffolding business for sale. Highly profitable business with regular repe...

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Eco-Friendly, Recyclable & Biodegradable Products Online Retailer
UK Wide

Has in excess of 2,100 subscribers, all of whom provide reliable, repeat business on an ongoing basis, in addition to a high volume of customers making one-off purchases. Operates from leasehold premises; however, the company could be relocated to a...

Asking Price: Offers Invited
Turnover: £1,067,787

RELOCATABLE


Pest Control Solutions
South East, UK

Offers professional and humane pest control solutions, helping clients throughout the South East maintain pest-free environments. Sources ethical, effective and competitively priced solutions, which meet its clients’ requirements. Offers invited.

Asking Price: Offers Invited
Turnover: £576,745

FREEHOLD



View more businesses for sale

News Search

Latest News

 
03
 
Jul
 

Next completes sale and leaseback of head office and warehouses | COMMERCIAL PROPERTY

High street fashion retailer Next Plc has confirmed the succ...

 
02
 
Jul
 

Benchmark Holdings secures sale of veterinary business | BUSINESS SALE

Sheffield-headquartered aquaculture health, nutrition and ge...

 
01
 
Jul
 

TM Lewin to close all UK stores in pre-pack administration | ADMINISTRATION

Shirtmaker TM Lewin will close all 66 of its UK stores as pa...

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