LONDON (Alliance News) - John Wood Group PLC said Tuesday it has acquired Canadian pipeline engineering company, Sunstone Projects Ltd, in a CAD14.5 million deal.
Under the terms of the acquisition, the international energy services company said Sunstone will be rebranded as Wood Group Mustang and operate within its Canadian operations. Sunstone will continue to be led by the existing management team under President Barry Bauhuis.
"As a part of a larger integrated engineering group we will continue to provide the same great service to existing clients while being able to pursue larger and more complex pipeline opportunities," said Bauhuis.
Sunstone Projects is a pipeline consulting company providing engineering, procurement and construction management services to clients in the Canadian oil and gas industry. The firm generated sales of approximately CAD21 million last year.
Wood Group Mustang provides services to the global energy industry, from project concept to completion, including project management, construction management, engineering and procurement services to the offshore, onshore, pipeline, refining, chemicals, industrial and automation sectors, operating in countries throughout Africa, Asia, Europe, the Middle
East, Latin America and North America.
"The Canadian pipeline system is expected to expand to ensure access to markets for oil & gas produced in Western Canada. The acquisition of Sunstone will strengthen our ability to provide our clients with services in this area. Sunstone's capability and geographic presence are complementary to Wood Group Mustang's existing pipeline business. Sunstone has an excellent reputation for pipeline project execution and will be an important part of our Canadian growth strategy," said Steve Knowles, president of Wood Group Mustang.
Shares in the international energy services firm were trading 1.30% higher at 777.00 pence per share Tuesday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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Wood Group (J) (WG.)