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LONDON - John Wood Group (LON:WG) PLC announced Friday it has agreed to sell its 50% interest in RWG (Repair & Overhauls) Limited to joint venture partner Siemens (ETR:SIEGn) Energy Global for $135 million in cash, subject to closing adjustments.
The transaction, expected to complete in late 2025 or early 2026 pending regulatory approvals, is part of Wood’s previously announced disposal program of non-core businesses. The sale contributes to the company’s target of generating $150-200 million in disposal proceeds in 2025.
RWG provides repair and overhaul services for industrial aero-derivative gas turbines used in oil and gas, power generation, and marine propulsion industries. The deal values RWG at 6.6 times adjusted EBIT and 7.8 times its cash contribution to Wood.
"The sale of RWG to our joint venture partner, Siemens Energy Global, is a significant milestone," said Ken Gilmartin, CEO of Wood. "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."
Proceeds from the transaction will be used to reduce Wood’s net debt. The company will no longer receive dividends or management charges from RWG following completion, which amounted to approximately $17.4 million in 2023.
This sale follows other recent disposals by Wood, including Kelchner Inc. for approximately $30 million in April 2025 and its 51% stake in EthosEnergy Limited in 2024.
Wood’s investment in RWG had a balance sheet value of $69.2 million as of December 31, 2023. Wood’s share of RWG’s post-tax profits was $16.3 million for FY23.
The information in this article is based on a company press release statement.
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