John Wood Group sells business to cut debt

Image source, Kaefer

Image caption, Kaefer will pay up to 拢91m for Wood's industrial services business

Scottish energy services giant John Wood Group has announced the sale of its industrial services business to a German firm for up to $118m (拢91m).

The deal with technical services provider Kaefer involves an initial payment of 拢80m, with a further payout of up to 拢11m "pending achievement of agreed financial goals".

Wood said the sale was part of its strategy to rationalise its portfolio.

Last August, Wood announced it was selling its nuclear business.

Cash proceeds from the two disposals will be used to reduce debt.

David Kemp, Wood's chief financial officer, said: "The sale of our industrial services business is the latest divestment aimed at maintaining our strong balance sheet and achieving our target leverage.

"As our focus has moved towards building a premium, differentiated and higher-margin business, the industrial services offering is no longer core to our strategy."

Aberdeen-based Wood's in颅dus颅trial ser颅vices busi颅ness em颅ploys about 2,000 people at 16 loc颅a颅tions in the UK and Ire颅land.

It provides ser颅vices for in颅dus颅trial op颅er颅a颅tions, such as the ap颅plic颅a颅tion of pro颅tect颅ive coat颅ings, thermal in颅su颅la颅tion and pass颅ive fire pro颅tec颅tion.