WorleyParsons takes over AFW UK

WorleyParsons has entered into a binding agreement to acquire Amec Foster Wheeler’s UK North Sea business.

Describing the target company, WorleyParsons said that AFW UK has world-class Maintenance, Modifications and Operations (“MMO”) capabilities and is a leader in the Engineering & Construction, Operations and Maintenance and Hook-up services markets on the UK Continental Shelf.

The business represents the majority of Amec FosterWheeler’s former UK upstream Oil and Gas operations, to be divested as a remedy to competition concerns raised in relation to the John Wood Group’s acquisition of Amec FosterWheeler.

AFW UK has maintainable revenue of approximately £350 million and maintainable EBITDA of £20 million per annum, WorleyParsons.

In a separate statement early Monday, Amec Foster Wheeler plc has confirmed it would to sell the majority of its UK North Sea operations to WorleyParsons Europe Limited, for a cash consideration of approximately £228 million, subject to closing adjustments.

The disposal was conditional upon the closing of the recommended all-share offer by John Wood Group PLC for Amec Foster Wheeler, which was also announced later on Monday.

This business being sold consists of the majority of Amec Foster Wheeler’s UK upstream oil and gas business located in the UK and serving UK customers (excluding its commissioning business, qedi) (the “Business”).

The transaction is expected to close at the end of October 2017.