Wood has reached an agreement to sell its North American Transmission & Distribution engineering business ('North America T&D') to Qualus LLC and 2737813 ALBERTA LTD (together, 'Qualus'), for cash consideration of $110 million, subject to customary closing adjustments(1).
North America T&D is a provider of comprehensive power infrastructure engineering for substations, transmission, distribution and renewable generation across Canada and the USA. Qualus is a leading pure-play power solutions firm and innovator at the forefront of power infrastructure transformation, with differentiated capabilities across grid modernization, resiliency, security, and sustainability.
Transaction highlights
- Sale of North America T&D to Qualus for a cash consideration of $110 million, subject to customary closing adjustments(1)
- Follows a highly competitive auction process, valuing North America T&D at 14.9 times adjusted EBITDA(2,3)
- Consistent with Wood’s previously announced disposal programme of non-core businesses
- Contributes to a total of approximately $275 million of disposal proceeds agreed so far in 2025(4), ahead of the previously announced $150 million to $200 million targeted for this year
- Expected to complete in the third or fourth quarter of 2025
- Proceeds will be used by Wood to reduce net debt and retained for general corporate purposes
Ken Gilmartin, CEO of Wood, commented:
'We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus, following a highly competitive sale process. This sale, along with the sale of Kelchner and the agreement to divest our interest in RWG, has led to
approximately $275 million of disposal proceeds agreed so far this year. We are now on track to exceed our previously announced target for disposal proceeds as we continue to simplify our portfolio.'
Strategic rationale and benefits of the Transaction
As previously announced, Wood has continued to evaluate its portfolio of businesses to identify those which are non-core to the Company’s strategy and growth priorities. North America T&D was identified as part of this process.
Furthermore, on 14 February 2025, Wood announced that it would target $150 million to $200 million of disposal proceeds in 2025 to help mitigate the impact of negative free cash flow in the year.
The Transaction follows two other disposals announced in 2025, bringing the total expected disposal proceeds agreed so far in 2025 to approximately $275 million(4).
The Transaction follows a highly competitive auction process, with the terms of the Transaction valuing North America T&D at 14.9 times adjusted EBITDA(2,3).The Transaction provides Wood with cash proceeds and a simpler portfolio in line with the Company’s previously announced strategy.
The Board of Wood considers that the Transaction is in the best interests of Wood and its shareholders as a whole.
Appendix 1 to this announcement contains a summary of the principal terms of the Transaction (see link below).
Use of proceeds
Net proceeds from the Transaction will reduce Wood’s net debt and shall be retained for general corporate purposes.
Notes
- The final amount of net proceeds will be subject to customary closing adjustments by virtue of the closing accounts process and deal associated costs.
- Based on North America T&D’s 2025 forecasted results for the financial year ending 31 December 2025 on a standalone basis, i.e., excluding the Wood group’s allocated costs.
- Adjusted EBITDA is adjusted earnings before interest, tax, depreciation and amortisation.
- Includes $135 million cash consideration from the sale of Wood’s interest in RWG (subject to completion adjustments, expected to complete in late-2025 or early-2026) and $30 million from the completed sale of Kelchner Inc.
- Adjusted EBIT is adjusted EBITDA after depreciation and amortisation. This measure excludes the amortisation of acquired intangibles.
Source: Wood
