Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Wood Group to acquire rival Amec Foster Wheeler for £2.2bn

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

Specialist Support Services For Adults
East Midlands, UK

The company provides person-centred support, progression and community integration, helping clients gain skills for living, employment and social skills.

Asking Price: Offers Invited
Turnover: £969,000

LEASEHOLD


Market Leading TV Shopping Channel
UK Wide

Highly successful business operating over a span of six years. Offers a comprehensive range of high-quality products and has successfully launched stock for over 400 suppliers.

Asking Price: Offers Invited
Turnover: £18,800,000

FREEHOLD


Provider Of Roofing And Building Services
Scotland, UK

Offers an extensive range of roofing and building services, ranging from minor works to major, multi-trade construction projects.

Asking Price: Offers Invited
Turnover: £510,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
26
 
Feb
 

Hanson-owned brickwork contractor closes down | BUSINESS NEWS

Brickwork firm Irvine-Whitlock, a subsidiary of building mat...

 
25
 
Feb
 

Fairstone secures further backing from PE firm TA Associates | BUSINESS NEWS

Acquisitive wealth management firm Fairstone Financial Manag...

 
24
 
Feb
 

Nestlé acquires recipe kit firm SimplyCook | BUSINESS SALE

Nestlé has strengthened its position in the e-commerc...

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

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.