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
When things are rushed, there’s a higher chance they can go wrong. We ended up with factories being built almost solely for the economic multiplier effect from construction activity without sufficient regard for raw-material supply and how to sell the output. We saw this in purified terephthalic acid.
INEOS has already committed over £500m spend on projects which are approved and currently being implemented at Grangemouth. This includes investment in our New Energy Plant, which is due for completion in late 2023 and will supply energy to all our site operations and the highly efficient technology will drive down emissions by at least 150,000 tonnes of CO2 per annum.
As with its other waste collection processes, Indaver will collect post-consumer polystyrene (PS), such as yogurt pots and single-use packaging, and recycle and produce the r-styrene through a proprietary depolymerization technology at its Antwerp, Belgium site.