Wood sells its nuclear business to Jacobs

06 September 2019

John Wood Group PLC announced recently the sale of its nuclear business to a subsidiary of Jacobs for a cash consideration of £250 M (around USD305 M) representing a multiple of approximately 12.4× based on 2018 EBITDA of £20.2 M (USD26.3 M).

Closing is conditional upon obtaining anti-trust clearance from the Competition and Markets Authority (“CMA”) and is currently anticipated before the end of Q1 2020. Both parties have agreed that Jacobs will pay a fee of £7.5 M (over USD9 M) to Wood in certain circumstances where the transaction is not cleared by the CMA. The cash proceeds from the divestment will be used to reduce debt and will enable Wood to take a significant step towards achieving its target leverage policy.

The Wood nuclear business designs, delivers and maintains strategic and complex nuclear assets for customers primarily in the UK. In 2018, the profit before tax for the year amounted to USD14.2 M and gross assets at year-end amounted to USD464 M.

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