Published: Tue, October 10, 2017
Finance | By Loren Pratt

Wood Group completes on AMEC acquisition

Wood Group completes on AMEC acquisition

AFW UK Oil & Gas is a Maintenance, Modifications and Operations (MMO) service provider.

"AFW UK is a world-class integrated solutions business with best-in-class MMO capabilities and an excellent track record of global expansion".

WorleyParsons CEO Andrew Wood said the 100% acquisition of AFW UK, the former upstream oil and gas assets of Britain?s Amec Foster Wheeler...

The deal was cleared by the Competition Markets Authority after Foster Wheeler Energy agreed to sell its North Sea engineering, construction and maintenance services business for in its upstream offshore oil and gas clients.

"We look forward to combining AFW UK's capabilities with our worldwide platform to create a global MMO business capable of driving medium term growth".

WorleyParsons will issue almost 25 million shares as part of the offer, and hopes to utilise its strengths as a market leader in the maintenance, modifications and operations (MMO) space to bring new opportunities to the UK Continental Shelf.

Investors Dar Group and John Grill have committed to participate in the entitlement offer to fund the deal, which is expected to close by the end of this month, suggesting there are no local competition issues to worry about.

The Amec name - established in 1982 following the merger of Fairclough Construction and William Press in 1982 - will disappear in the Newly-branded Wood plc business.

Worleyparsons made a $33.5 million net profit on revenues of $4.4 billion for the full year ending June 30, 2017.

The bank repeated its concern that cash generation in the first two years of the merger could disappoint the market due to restructuring and other contingency outflows that may arise.

TRADEMARK VIOLATION NOTICE: "Analysts Set Amec Foster Wheeler PLC (AMEC) Target Price at $545.41" was originally reported by Week Herald and is owned by of Week Herald.

Like this: