Wood Group to acquire Amec Foster Wheeler
Wood Group has agreed to acquire Amec Foster Wheeler for about $2.7 billion.
Ian Marchant, chairman of Wood Group, said: “By leveraging Amec Foster Wheeler’s and Wood Group’s combined asset life cycle services across project delivery, engineering, modifications, construction, operations, maintenance and consulting activities, the combined group will be able to better capitalize on growth opportunities across a broad cross section of energy and industrial end markets.”
The combination has been unanimously recommended by the boards of both companies. The merger is expected to become effective in the second half of 2017, subject to regulatory approvals and other consents.
Amec Foster Wheeler shareholders will own approximately 44% of the share capital of the combined group.
Robin Watson and David Kemp, currently CEO and CFO of Wood Group respectively, will continue as CEO and CFO of the combined group. Marchant will continue as chairman.
Four members of the Amec Foster Wheeler board will join the board of the combined group upon completion of the combination as non-executive directors, with Roy Franklin joining as deputy chairman and senior independent director.