Aberdeen-based John Wood Group has announced the sale of its industrial services to technical services provider Kaefer for an initial payment of $104 million.
The deal with the group headquartered in Bremen in Germany includes a further potential payment of $14 million pending on the business achieving agreed financial goals.
The divestment is another step in Wood's rationalisation strategy and follows the planned sale of its nuclear business to US firm Jacobs which was announced in August 2019 and is expected to complete this quarter.
Cash proceeds from the sales will be used to pay down debt.
Wood's chief financial officer David Kemp said: “The sale of our industrial services business is the latest divestment aimed at maintaining our strong balance sheet and achieving our target leverage.
“As our focus has moved towards building a premium, differentiated and higher-margin business, the industrial services offering is no longer core to our strategy.
“However, it is an excellent fit with Kaefer who see a clear opportunity to grow the business further and extend its market share across new sectors and geographies.”
Wood’s industrial services business provides integrity and fabric maintenance for assets in the marine, process energy, offshore oil & gas and infrastructure sectors across the UK and Ireland.
