Wood’s wholly-owned subsidiary, JWG Investments, is selling its 50% interest in RWG (Repair & Overhauls), to Siemens Energy Global in a $135 million cash deal.
The announcement is consistent with Wood’s previously announced disposal programme of non-core businesses and contributes to the $150m to $200m disposal proceeds targeted in 2025.
The transaction is expected to complete in late-2025 or early-2026 and is conditional on the receipt of certain regulatory clearances. The proceeds will be used by Wood to reduce net debt.
Ken Gilmartin, CEO, commented: “The sale of RWG to our joint venture partner, Siemens Energy Global, is a significant milestone.
“As previously announced, our disposal programme of non-core businesses is part of our strategy to simplify Wood and help mitigate the impact of negative free cash flow in the year. The sale will also ensure continuity for the employees and customers of RWG.”
Wood is continuing to work with its auditor towards the publication of Wood’s audited accounts for the financial year ended 31 December 2024.
It is also in potential takeover talks with Dubai-based Sidara which is said to have indicated a desire to lower its previously indicated 35p per share offer in view of the Financial Services Authority probe into the Aberdeen-based company. It faces a Monday deadline to make its intentions clear.
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