Wood Group (John) PLC Sale of offshore labour supply operations (9288S)
March 14 2023 - 9:00AM
UK Regulatory
TIDMWG.
RNS Number : 9288S
Wood Group (John) PLC
14 March 2023
Sale of offshore labour supply operations in Gulf of Mexico
14 March 2023
John Wood Group PLC ('Wood' or 'the Group') today announces that
it has completed the sale of its offshore labour supply operations
in the Gulf of Mexico to Louisiana-based energy services
contractor, Danos.
The sale was for a cash consideration of $17 million, with Wood
retaining working capital. This represents an EV/EBITDA multiple of
around 8x, including the working capital.
Wood's offshore labour supply operations in the Gulf of Mexico
contributed around $90 million of revenue and around $3.5 million
of adjusted EBITDA in 2022. It employs around 700 people.
The net cash proceeds from this sale will further enhance the
financial flexibility of the Group.
Ken Gilmartin, Wood's CEO, said: "This divestment signals the
proactive steps we're taking to selectively high grade the Group's
portfolio and invest in the markets and solutions where we see the
strongest profitable growth. This is aligned to the strategy we set
out in November 2022. Wood is committed to the USA with the Gulf of
Mexico remaining an important region for our offshore consulting,
capital projects and brownfield engineering businesses."
For further information:
Simon McGough, President, Investor Relations +44 (0)7850 978 741
Alex Le May / Ariadna Peretz, FTI Consulting +44 (0)20 3727 1340
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