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 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...
LEASEHOLD
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...
LEASEHOLD
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...
LEASEHOLD
|
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...
Sign up to receive our acquisition alert emails to get your FREE guide
|
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...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources