Aberdeen-based oil and gas services giant Wood Group on Wednesday increased its presence in the automotive hub of Detroit by acquiring CEC Controls for $59 million.
And late on Tuesday, Wood Group offered to sell the majority of Amec Foster Wheeler’s North Sea oil and gas operations in a bid to avoid competition concerns about its proposed £2.2 billion takeover of its rival.
CEC Controls is headquartered near Detroit and employs more than 220 across its 12 North American offices and office in Romania.
“Further deepening Wood Group’s automation and control capabilities, this follows the acquisition of the Automated Technology Group (ATG), one of the UK’s largest independent suppliers of control and power solutions for industrial automation, in September 2015,” said Wood Group.
CEC Controls’ current clients include Ford, GM and Fiat-Chrysler and the business will continue to be led by its existing management team.
CEC Controls currently has gross assets of $34 million and generated an EBITA of $9.6 million in 2016.
Robin Watson, Wood Group chief executive said: “Bringing 50 years of expertise in delivering services to the automotive sector, CEC Controls significantly complements and strengthens the innovative technical solutions we provide to clients within automation and control.
“The acquisition supports the geographical broadening of our footprint within the automotive sector particularly in the US; deepening our presence in the key automotive hub of Detroit, where CEC Controls is headquartered.
“It also provides us the opportunity to further enhance the industrial process & control capabilities we offer to this industry and adjacent sectors including aerospace, logistics, water, and pharmaceuticals.”