Wood has announced that its wholly-owned subsidiary, JWG Investments Limited ('JWG'), has reached an agreement to sell its 50 per cent. interest in RWG (Repair & Overhauls) Limited ('RWG'), a provider of repair and overhaul services to operators of industrial aero-derivative gas turbines in the global oil and gas, power generation and marine propulsion industries, to Siemens Energy Global, a wholly-owned subsidiary of Siemens Energy and Wood's joint venture partner, for a cash consideration of $135 million, subject to closing adjustments(1).
Transaction highlights
- Sale of Wood's 50 per cent. interest in RWG to Siemens Energy Global for a cash consideration of $135 million, subject to closing adjustments(1)
- Consistent with Wood's previously announced disposal programme of non-core businesses and contributes to the $150 million to $200 million disposal proceeds targeted in 2025
- Transaction is expected to complete in late-2025 or early-2026 and is conditional on the receipt of certain regulatory clearances
- Proceeds will be used by Wood to reduce net debt
Ken Gilmartin, CEO of Wood, commented:
'The sale of RWG to our joint venture partner, Siemens Energy Global, is a significant milestone. As previously announced, our disposal programme of non-core businesses is part of our strategy to simplify Wood and help mitigate the impact of negative free cash flow in the year. The sale will also ensure continuity for the employees and customers of RWG.'
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Source: Wood
