John Wood Group PLC (Wood Group; Aberdeen, Scotland; www.woodgroup.com) and Amec Foster Wheeler (London, U.K.; www.amecfw.com) have announced that Wood Group will take over Amec Foster Wheeler. The boards of both companies reached agreement on the terms of a recommended all-share offer by Wood Group to acquire the entire issued and to be issued share capital of Amec Foster Wheeler. The terms of the combination value the issued and to be issued share capital of Amec Foster Wheeler at approximately £2.225 billion.
The combination will result in Amec Foster Wheeler shareholders owning approximately 44% of the share capital of the combined group.
Commenting on theannouncement, Ian Marchant, the Chairman of Wood Group said: “The Combination represents a transformational transaction for Wood Group, which accelerates our strategy and creates a global leader in project, engineering and technical services delivery across a range of industrial sectors. 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. The Combination will create an asset-light, largely reimbursable business of greater scale and enhanced capability, diversified across the oil & gas, chemicals, renewables, environment & infrastructure and mining segments.”
Robin Watson and David Kemp, currently CEO and CFO of Wood Group respectively, will continue as CEO and CFO of the combined group. Ian Marchant will continue as Chairman of the Combined Group.
Four members of the Amec Foster Wheeler Board will join the board of the combined group upon completion of the combination as non-executive directors.