UK-Based Wood Group Rejects Dubai AE’s Sweetened $1.9B Buyout Offer

U.K.-based international energy engineering expert Wood Group stated May 23 it has actually turned down a 3rd takeover quote in current weeks from Dubai-based engineer Sidara, previously Dar Group– with the current deal valued at $1.93 billion.

Board members of the Aberdeen, Scotland-based business stated the Sidara quote “continued to considerably underestimate the Group and its potential customers,” and all turned down the deal.

2 previous quotes, made May 8 and May 15, were valued at $1.8 billion and $1.87 billion, respectively.

Sidara has till June 5 to make an official deal or end talks under U.K. takeover guidelines, Wood Group stated in its statement.

Sidara, which altered its name in 2023had actually not published a statement of the current acquisition advancement and might not be reached by ENR by press time.

The company likewise is moms and dad of Lebanon-based engineering and preparation specialist Dar Al-Handasah Consultants, U.K.-based job management company Currie & & Brown, and U.S.-based worldwide architecture company Perkins & & Will and international engineer TYLin. They continue to run separately under their brand names, the company stated at the time of the name modification.

The brand-new acquisition effort happens one year after personal equity company Apollo Global Management withdrew its revealed deal to purchase Wood Group, several media reports have actually stated.

Wood Group ranks No. 13 on ENR’s most current Leading 150 Global Design Firms list, reporting $3.48 billion in 2022 international engineering profits– about $2.87 billion outside the U.K., with 36% of the overall in the U.S.

Sidara, noted as Dar Group, ranks at No. 23, reporting $2.2 billion in 2022 earnings– all worldwide and 46% in the U.S. The company likewise ranks at No. 134 on ENR’s newest Leading 250 Global Contractors list, reporting about $2.84 billion in worldwide building profits in 2022.

In a January upgrade of 2023 outcomes, Wood Group reported earnings of about $6 billion, up 9% with development throughout all service systems. It stated year-end adjusted revenues were somewhat ahead of assistance, at $420 million to $425 million, with adjusted revenue at about 7%.

Wood stated it would enhance success and provide “substantial complimentary capital” in 2025. In a note previously this month, Wood Group revealed a “simplification” program under which it intended to increase earnings to about $10 million this year and about $60 million in 2025.

“We are now one year into our tactical development journey and our outcomes continue to reveal clear development,” CEO Ken Gilmartin stated in a January results release. In current remarks to ENR, he kept in mind that federal government financing programs “have actually driven a considerable boost in our early stage options,” including there was more financial investment in 2015 from oil and gas customers “as the energy security program has actually increased internationally.”

Wood Group kept in mind essential energy tasks underway in the Gulf of Mexico, Germany, Spain and overseas U.K.

On May 9, nevertheless, Wood Group reported a 6% drop in earnings to $1.36 billion for its very first quarter 2024 ending March 31, compared to the exact same duration in 2015, “in part showing a modification in its technique that concentrates on companies with greater margins,” the company stated. Wood Group pointed out “weak point in the minerals market” and decreased engineering, procurement and building work.

Sidara stated in April that it was offering 19% of its stake in Australia-based engineer Worley, which is openly traded, decreasing it to about 4.5%. The Dubai company, a Worley investor for 7 years, had actually been its biggest and had actually tried a takeover in 2016. Media approximated the sale to be worth about $927 million.