Wood Group (John) PLC Disposal of non-core conveyor systems business (8049T)

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RNS Number : 8049T

Wood Group (John) PLC

25 March 2019

Wood announces disposal of non-core conveyor systems business

Wood today announces further progress with its non-core asset disposal programme having agreed the sale of its Terra Nova Technologies business, a conveying and material handling systems solutions business, to Cementation Americas, a business owned by Murray & Roberts Holdings Ltd. Cash proceeds in respect of the disposal will be $38m, representing a multiple of 5.2x 2018 EBITA of $7.3m. The sale remains subject to normal conditions, with closing expected in Q2.

David Kemp, Wood chief financial officer commented: "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."

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Note to Editors:

Wood is a global leader in the delivery of project, engineering and technical services in energy, industry, and the built environment. We operate in more than 60 countries, employing around 60,000 people, with revenues of around $11 billion. We provide performance-driven solutions throughout the asset life cycle, from concept to decommissioning across a broad range of industrial markets, including the upstream, midstream and downstream oil & gas; power & process; environment and infrastructure; clean energy; mining; nuclear and general industrial sectors. www.woodplc.com

For further information contact: press.office@woodplc.com

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