Aberdeen energy services firm Wood has sold a US-based business in a $38 million (£28 million) deal as part of a disposal programme aimed at reducing its debts.
The company has agreed the sale of Terra Nova Technologies, which specialises in systems for conveying and handling materials, to Cementation Americas, a business owned by South African mining contractor Murray & Roberts Holdings. The sale is expected to complete during the second quarter of the year.
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David Kemp, Wood chief financial officer said: "Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers. Wood's strategy going forward is to focus on asset light solutions rather than the manufacture/fabrication of equipment. The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan."
Wood last week reported results ahead of market expectations as it reaped the benefits of its takeover of rival Amec Foster Wheeler.
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But shares in the group fell after it said deleveraging would be more gradual than originally expected this year due to a slower sector recovery in its oil and gas markets. Debt reduction last year was in line with forecasts, down to $1.5 billion from the $2 billion it reached after the Amec deal.
