John Wood Group PLC announced on Wednesday its plan to divest two non-core businesses in separate transactions totaling £165 million ($218 million). This strategic move includes the sale of its 51% stake in Ethos Energy Group Ltd. to One Equity Partners LP, a private equity firm led by Davis Polk & Wardwell LLP.
John Wood to Sell Non-Core Businesses : A Significant Stake Sale
The agreement sees John Wood part with its stake in Ethos Energy, a joint venture with Siemens Energy AG. One Equity Partners will also acquire Siemens’ portion, marking a significant consolidation of control. While specific financial terms of the deal remain undisclosed, John Wood expects to secure around $95 million in cash from the transaction, anticipated to complete by the end of 2024, pending regulatory approvals.
Additionally, John Wood is poised to receive loan notes worth up to $42 million from this sale. EthosEnergy, which specializes in turbine parts and services for the energy sector, contributed $34 million in earnings to John Wood in 2023.
Sale of Automation Business
In a second transaction, John Wood will sell its automation-focused industrial and process control systems business, CEC Controls Co. Inc., along with its affiliated Mexican entity, for $30 million. This unit, based in Michigan, generated $66 million in revenue and $6 million in adjusted earnings last year. SCIO Automation GmbH, a global player in industrial automation, will acquire the business.
