Aug 29: John Wood Group PLC (“Wood” or the “Company”) announces that it has reached an agreement to sell its North American Transmission & Distribution engineering business (“North America T&D”) to Qualus LLC and 2737813 ALBERTA LTD (together, “Qualus”), for cash consideration of $110 million, subject to customary closing adjustments (the “Transaction”).
About North America T&D
North America T&D is a provider of comprehensive power infrastructure engineering for substations, transmission, distribution and renewable generation across Canada and the USA.
About Qualus
Qualus is a leading pure-play power solutions firm at the forefront of power infrastructure transformation, with capabilities across grid modernization, resiliency, security, and sustainability.
Transaction Highlights
- Sale of North America T&D to Qualus for $110 million, subject to customary closing adjustments.
- Valuation: 14.9x adjusted EBITDA.
- Part of Wood’s disposal programme of non-core businesses.
- Brings total disposal proceeds agreed in 2025 to approximately $275 million, ahead of the $150m–$200m target.
- Expected completion: Q3 or Q4 2025.
- Proceeds to be used to reduce net debt and for general corporate purposes.
CEO Comment
“We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus, following a highly competitive sale process. This sale, along with the sale of Kelchner and the agreement to divest our interest in RWG, has led to approximately $275 million of disposal proceeds agreed so far this year. We are now on track to exceed our previously announced target for disposal proceeds as we continue to simplify our portfolio.”
– Ken Gilmartin, CEO of Wood
Strategic Rationale
Wood continues to simplify its portfolio, focusing on core growth priorities. The disposal of North America T&D is aligned with this strategy and provides funds to mitigate negative free cash flow in 2025.
Financial Information
- Total assets of North America T&D (FY23): $12.3 million.
- Revenue (FY23): $37.3 million.
- Adjusted EBITDA (FY23): $5.0 million.
- Adjusted EBIT (FY23): $3.9 million.
- Employees: ~250 people.
Use of Proceeds
Net proceeds will reduce net debt and be retained for general corporate purposes.
Next Steps
The Transaction is subject to customary closing conditions and regulatory requirements. Expected to close by Q4 2025.
Enquiries
- Simon McGough, President, Investor Relations – +44 (0)7850 978 741
- FTI Consulting (Alex Le May / Ariadna Peretz) – +44 (0)20 3727 1340
Slaughter and May is acting as Legal Adviser to Wood in connection with the Transaction.
