Sector News

Jacobs purchases Wood’s nuclear business for US$303.5m

August 27, 2019
Chemical Value Chain

WOOD is to sell its nuclear business to Jacobs for £250m (US$303.5m). The sale proceeds will go towards reducing Wood’s debt from its 2017 purchase of Amec Foster Wheeler.

The Financial Times reports that Wood’s net debt increased to US$2bn after its US$2.2bn purchase of rival Amec Foster Wheeler in 2017. The report says that debt had fallen to US$1.5bn by December 2018, adding that in May, Wood sold its TNT Materials Handling business for US$41m.

Wood’s nuclear business delivers, and maintains “strategic and complex” nuclear assets, primarily for UK customers. The business has more than 2,000 employees. Jacobs expects that combining Wood’s nuclear team with its existing Aerospace, Technology, and Nuclear business will provide a platform for growth in nuclear and defence in the UK, and increased access to Europe and Asia. Further strategic and financial benefits are also expected.

The acquisition is expected to close before the end of Q1 2020.

David Kemp, Chief Financial Officer at Wood, said: “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy.”

Steve Demetriou, CEO and Chair of Jacobs, said: “This acquisition further strengthens Jacobs’ position in highly profitable and complementary sectors within nuclear and defence…”

Amec Foster Wheeler was a consultancy, engineering, and project management company. It was formed in 2014 when AMEC purchased Swiss engineering conglomerate Foster Wheeler in a £2bn deal.

By Amanda Jasi

Source: The Chemical Engineer

comments closed

Related News

October 2, 2022

Trinseo announces potential closure of Boehlen, Germany Styrene Plant

Chemical Value Chain

Trinseo (NYSE: TSE), a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany.

October 2, 2022

Celeste Mastin appointed H.B. Fuller President and CEO, succeeding Jim Owens upon his retirement

Chemical Value Chain

H.B. Fuller Company announced that Celeste Mastin, Executive Vice President and Chief Operating Officer, will succeed Jim Owens as H.B. Fuller’s President and Chief Executive Officer, effective December 4, 2022. Upon assuming the role, Mastin will also join the Company’s Board of Directors, replacing Owens, who will be retiring.

October 2, 2022

LyondellBasell realigns executive team, forms circular and low-carbon solutions business

Chemical Value Chain

New LyondellBasell CEO Peter Vanacker, who joined the company from Neste in May, today named his senior executive team and outlined organizational changes, including creation of a circular and low-carbon solutions business. All changes will be effective 1 October.