Divestment Options to Raise Cash 💰💰3 Apr 2025 14:15
Wood Group has made several acquisitions over the years, and some of its subsidiaries or business units could be divested to raise cash—particularly those outside its core **energy transition (clean energy, decarbonization, sustainability)** focus. Below is a breakdown of key subsidiaries, their acquisition costs (where available), and potential valuation estimates if sold.
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### **1. Built Environment Consulting (Formerly part of Amec Foster Wheeler / WSP Deal)**
- **Business Focus:** Environmental consulting, infrastructure, water, and government services.
- **Acquisition Background:**
- Part of the **£2.2 billion Amec Foster Wheeler acquisition (2017)**.
- Some units were sold to **WSP Global (2019)** for ~£300M, but Wood retained parts.
- **Potential Value Today:**
- Estimated **$200M–$400M** (depending on how much is left post-WSP sale).
- **Likely Buyers:** AECOM, Tetra Tech, Stantec, or private equity.
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### **2. Conventional Energy (O&G) Services – Legacy Assets**
- **Business Focus:** Onshore/offshore oil & gas engineering, maintenance, and brownfield projects.
- **Acquisition Background:**
- Many assets came from **Amec Foster Wheeler (2017, £2.2B)** and **PSN (2011, ~$1B)**.
- **Potential Value Today:**
- **$500M–$1B+** (depending on oil prices and buyer appetite).
- **Likely Buyers:**
- **Middle Eastern NOCs (ADNOC, Aramco, etc.)** may want operational control.
- **Private equity (Apollo, KKR)** could bundle with other energy services firms.
- **Competitors (Worley, Technip Energies, Kent)** may cherry-pick assets.
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### **3. Industrial Services (Remaining Non-Core Units)**
- **Business Focus:** Maintenance, turnaround, and industrial asset support.
- **Acquisition Background:**
- Previously sold **Nuclear (2022, $305M to Jacobs)** and **Industrial Services (2021, ~$100M to Safran)**.
- **Potential Value Today:**
- Remaining units could fetch **$100M–$300M**.
- **Likely Buyers:**
- **Safran, Bilfinger, or regional industrial services firms.**
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### **4. Power Solutions (Non-Renewables)**
- **Business Focus:** Fossil-fuel power plant engineering (coal, gas).
- **Acquisition Background:**
- Part of **Amec Foster Wheeler’s legacy power business**.
- **Potential Value Today:**
- **$200M–$500M** (declining due to energy transition).
- **Likely Buyers:**
- **Emerging market players (India, Middle East, Southeast Asia).**
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### **5. Joint Ventures & Non-Core Investments**
- **Examples:**
- **EthosEnergy (formerly JV with Siemens, now exited).**
- **JV stakes in Middle East/Asia projects.**
- **Potential Value Today:**
- **$50M–$200M** (depending on JV terms).
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### **Estimated Total Divestment Potential: $1B–$2B+**
Wood could raise
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