Energy services giant Wood Group has struck a “transformational” deal to acquire Amec Foster Wheeler in a transaction that values the engineering group at more than £2.2bn.
The boards of Wood Group and Amec Foster Wheeler have reached agreement on the terms of a recommended all-share offer by Wood Group to buy the entire share capital of Amec Foster Wheeler. The combination will result in Amec Foster Wheeler shareholders owning 44 per cent of the shares of the newly enlarged group.
Robin Watson and David Kemp, currently chief executive and chief financial officer of Wood Group respectively, will continue in the same roles at the combined group, while Ian Marchant will continue as chairman. Four members of the Amec Foster Wheeler board will join the board of the combined group upon completion as non-executive directors, with Roy Franklin joining as deputy chairman and senior independent director.
The Wood Group directors believe that the combined group will be able to achieve significant sustainable cost synergies of at least £110m per year on a recurring basis.