The boards of Amec Foster Wheeler and the John Wood Group have reached agreement on the terms of a recommended all-share offer by Wood Group to acquire Amec Foster Wheeler in a £2.23 million ($2.71 billion) deal. Based on their experience of operating in the engineering and technical services industry, the Wood Group directors believe the combined group will be able to achieve significant sustainable cost synergies of at least £110 million ($134 million) per year. They also believe significant additional revenue growth opportunities may be realized as a result of the acquisition.
“The combination represents a transformational transaction for Wood Group, which accelerates our strategy and creates a global leader in project, engineering and technical services delivery across a range of industrial sectors,” said Ian Marchant, chairman of Wood Group. “The combination extends the scale and scope of our services, deepens our existing customer relationships, facilitates further development of our technology-enabled solutions, and broadens our end market, geographic and customer exposure.”
By leveraging the two company’s combined-asset life cycle services across project delivery, engineering, modifications, construction, operations, maintenance and consulting activities, the Wood Group will be able to better capitalize on growth opportunities across a broad cross section of energy and industrial end markets.