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

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach