Mon, 13 Mar 2017 | MERGER
Aberdeen-based oilfield services firm Wood Group is to buy its rival Amec Foster Wheeler for £2.2 billion as the energy industry battles oil price volatility.
In a statement Wood Group said it had offered 0.75 of new shares for each Amec Foster Wheeler share, valuing each Amec share at £5.64.
Wood Group said the takeover represented an opportunity for “cost and revenue synergies”. The firm hopes to slash £110 million in costs from the combined business.
Shares in both companies climbed as news of the deal broke.
The deal marks a trend of energy firms partnering up as they tackle weak activity and low oil prices. Amec’s 2016 revenues fell eight per cent to £5.4 billion; Wood Group’s 16 per cent to $4.9 billion.
Under the deal, Amec shareholders will own 44 per cent of the new business. Wood Group’s management team - chief executive Robin Watson, finance chief David Kemp, chairman Ian Marchant - are to stay on in their roles.
"The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions and broadens our end market, geographic and customer exposure,” Ian Marchant said.
"Delivering significant sustainable synergies will also result in a leaner and more competitive combined group, creating value for shareholders."
The business offers a unique opportunity to invest in a company dedicated to providing exceptional care while promoting independence for young adults.
The business was founded over 15 years ago and is well renowned for their holistic service; delivering a compassionate, reliable and professional service to the variety of Children and Adults they support.
The business provides sought after services to assist NHS Mental Health Trusts and CCGs. Currently clients being supported are living with various diagnoses including; Learning Difficulties, Autism, Schizophrenia and Depression.
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