Post-merger company will be one of Europe’s largest energy design and engineering companies
John Wood Group (ticker: WG) and Amec Foster Wheeler (ticker: AMFW) agreed to a merger today, combining the engineering services companies in a $2.7 billion deal. The resultant company would have a valuation of about $6 billion, making it one of the largest European energy project engineering design firms, ahead of Petrofac and Saipem.
Wood Group Chairman Ian Marchant commented on the proposed merger, stating “by leveraging Amec Foster Wheeler’s and Wood Group’s combined asset life cycle services across project delivery, engineering, modifications, construction, operations, maintenance and consulting activities, the combined group will be able to better capitalize on growth opportunities across a broad cross section of energy and industrial end markets.”
Robin Watson and David Kemp, currently CEO and CFO of Wood Group respectively, will continue as CEO and CFO of the combined group. Ian Marchant will continue as chairman of the combined group.
Wood Group is an international engineering service company, providing consulting for the energy and industrial sectors, including pipeline systems and offshore platforms for oil and gas production. Amec Foster Wheeler offers design services for oil and gas, power, mining and environmental companies. Amec typically focuses on facilities design, providing designs from offshore platforms to refineries.
