Sidara to acquire Wood for 30 pence per share in cash deal

LONDON - Sidara Limited has agreed to acquire John Wood Group PLC for 30 pence per share in cash, valuing the engineering company at approximately £216 million, as part of a comprehensive financial rescue package.

The acquisition comes as Wood faces significant financial challenges, with the company having generated no sustainable free cash flow since 2017 and accumulated approximately $1.5 billion in total free cash outflow over that period.

The deal includes a $450 million capital injection from Sidara, with $250 million available upon shareholder approval and a further $200 million upon completion. Wood has also secured an extension of its debt facilities to October 2028 and additional liquidity arrangements with lenders.

Wood’s board unanimously recommends the offer, which represents a 62.7 percent premium to the closing share price on April 30, 2025, the last trading day before Wood’s shares were suspended from listing due to delayed financial reporting.

"Today is an important milestone in providing a stable foundation for Wood to deliver on its significant potential," said Roy Franklin, Chair of Wood. "This is the best option for all stakeholders, whilst delivering some value for our shareholders after what has been a very difficult few years."

The acquisition is subject to several unusual conditions, including publication of Wood’s audited 2024 accounts by October 31, 2025, and the effectiveness of debt facility amendments by December 31, 2025. If any of these conditions are not met, the deal will automatically lapse.

Sidara, a privately-held global engineering and design group, plans to operate Wood as its Energy and Materials division while retaining the Wood brand. The transaction is expected to complete in the first half of 2026.

The announcement follows Wood’s ongoing financial struggles, including regulatory fines, loss-making contracts, and significant working capital unwinding as the business moved away from large-scale lump sum turnkey contracts.

Based on a press release statement, Wood’s directors believe any alternative refinancing option would likely generate materially less value for shareholders than the terms of this acquisition.

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