Engineering services giant, John Wood Group (wood.), is preparing to offload its stake in a business as part of a strategy to reduce debt and free up cashflow.
Through its subsidiary JWG Investments, wood has agreed to sell its 50 per cent interest in RWG (Repair & Overhauls) to Siemens Energy, for $135 million cash.
Back in February, wood announced it hoped to achieve up to $200 million through the sale of non-core businesses, to offset negative free cashflow in the year.
RWG was identified as part of this disposal process.
Similar disposals include in April, when wood announced the sale of Kelchner, a US civil construction services business, for around $30 million.
In 2024, wood also announced the sale of its 51 per cent stake in EthosEnergy and the sale of CEC Controls Company Inc.
wood has yet to publish its audited accounts for the financial year ended 31 December 2024.
However, at 31 December 2023, wood’s investment in RWG was $69.2 million and its share of RWG’s post-tax profits was $16.3 million, accruing dividends of $8.1 million in 2023 and $9.4 million in 2024.
This latest transaction is expected to complete in late-2025 or early-2026, subject to regulatory approval.
wood chief executive, 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.”
wood provides consulting, projects and operations solutions in 60 countries, employing around 35,000 people.
RWG is a provider of repair and overhaul services to operators of industrial aero-derivative gas generators in the global oil and gas, power generation, and marine propulsion industries.
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