Troubled Aberdeen-based engineering giant John Wood Group plc said on Friday its subsidiary JWG Investments Limited has reached an agreement to sell its 50% interest in RWG (Repair & Overhauls) Limited for $135 million in cash.
The stake is being sold to Siemens Energy Global GmbH & Co. KG, a wholly-owned subsidiary of Siemens Energy AG and Wood’s joint venture partner.
RWG is 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.
The UK’s Financial Conduct Authority (FCA) has commenced an investigation into Wood covering the period from January 1, 2023, to November 7, 2024.
Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.
Proceeds of the sale will be used by Wood to reduce net debt. Wood said the deal is consistent with its previously announced disposal programme of non-core businesses and contributes to the $150 million to $200 million disposal proceeds targeted in 2025.
Wood CEO Ken Gilmartin said: “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.”