Amec Foster Wheeler plc ("Amec Foster Wheeler") has today entered into a binding agreement to sell the majority of its UK North Sea operations to WorleyParsons Europe Limited, for a cash consideration of approx. £228 million, subject to closing adjustments.
The disposal is conditional upon the closing of the recommended all-share offer by John Wood Group PLC ("Wood Group") for Amec Foster Wheeler (the "Combination"), which is expected later today, and follows the announcement by Wood Group on 12 September 2017 that the UK Competition and Markets Authority had accepted the remedy formally offered by Wood Group and Amec Foster Wheeler in connection with the Combination.
This business being sold consists of the majority of Amec Foster Wheeler's UK upstream oil and gas business located in the UK and serving UK customers (excluding its commissioning business, qedi) (the "Business").
In 2016, the Business contributed revenues of £740 million and trading profit of £43 million to Amec Foster Wheeler. In H1 2017, the Business contributed revenues of £323 million and trading profit of £34 million. Both periods include a significant contribution from major projects which are expected to complete in the near term. The value of the gross assets the subject of the transaction is £459 million (as at 30 June 2017).
The transaction is expected to close at the end of October 2017. The cash proceeds will be used to reduce net debt. Amec Foster Wheeler was advised on the disposal by Rothschild.