Wood Group (John Wood Group) (LON: WG.) has seen its shares rise over 2% Thursday after it finalised the sale of its 51% stake in EthosEnergy.
The company has sold its stake to private equity firm One Equity Partners for a net cash consideration of $138 million.
The deal, completed on December 31, 2024, is a step in Wood’s strategy to streamline its portfolio and focus on core business activities.
EthosEnergy, a joint venture with Siemens Energy AG, specialises in rotating equipment and employs approximately 3,600 people worldwide.
The transaction includes the replacement of $42 million in previously planned loan notes with additional cash consideration.
Ken Gilmartin, CEO of Wood, commented: “We are pleased to complete the sale of EthosEnergy to One Equity Partners. This strategic divestment is part of our strategy to be selective and focused on our core business. We will continue to align our portfolio as part of our commitment to simplify Wood.”
The sale of EthosEnergy is expected to provide Wood with greater financial flexibility as it pursues its growth strategy.
In 2023, EthosEnergy contributed $34 million in adjusted EBITDA to Wood’s results, though no revenue was recognised from the business.
This divestment follows the initial agreement reached on August 28, 2024, between Wood and Siemens Energy to sell their stakes in the joint venture.
EthosEnergy was previously part of Wood’s Investment Services business unit.
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