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

Luxury Kennels & Cattery
Yorkshire and the Humber, UK

Luxury kennels and cattery with professional grooming parlour (licensed for 142 dogs and 26 cats) in Peterborough for Sale. An opportunity to acquire this luxury kennels and cattery with stunning spacious four bedroom detached residence which must be...

Asking Price: £1,500,000
Turnover: £522,542

LEASEHOLD


Haulage Business
South Wales, Wales, UK

The business has been established for a number of years and has been owned and operated by the founder since that date. Offers invited.

Asking Price: £850,000
Turnover: £2,595,443

FREEHOLD


Bar & Function Room
Ilkley, Yorkshire and the Humber, UK

Situated in the heart of Ilkley town centre just off the busy Brook Street. The yard is a stylish bar offering a wide range of drinks, good, quality food, music with varied DJ’s and live artists all encompassed in an interesting layout. Offers invite...

Asking Price: £775,000
Turnover: £600,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

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