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."
This established business specialises in the maintenance of heating, cooling, ventilation and refrigeration in industrial, commercial and domestic markets providing a high volume of repeat business from regular call cycles.
LEASEHOLD
The Business sells a variety of accessories for the fitness market through Amazon, ebay and its own website. In the financial year 2019-2020 the Business achieved a turnover of £6 million and is currently on track to do sales of £10 million in the cu...
WEB-BASED
Service offering includes, planning and design, installation and project management, service and maintenance and consultant design. The business also offers retail refrigeration units, air conditioning and licensed trade catering equipment. Benefits...
LEASEHOLD
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