John Wood Group PLC has agreed to sell its 50% interest in its subsidiary, RWG (Repair & Overhauls) Limited, to Siemens Energy Global for $135 million in cash.
It comes as part of a previously announced disposal programme that targets up to $200 million this year.
Proceeds will be used to reduce net debt, Wood added.
“The sale of RWG to our joint venture partner, Siemens Energy Global, is a significant milestone,” said Wood chief executive Ken Gilmartin.
“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.
“The sale will also ensure continuity for the employees and customers of RWG.”
Completion is expected in late 2025 or early 2026, subject to regulatory clearances.
RWG contributed some $32.9 million of adjusted EBITDA in the year ended 31 December 2023.
Wood’s share of RWG post-tax profit for the year was $16.3 million, and was valued on the balance sheet at $69.2 million at last year’s end.
RWG provides repair and overhaul services to operators of industrial aero-derivative gas turbines in the global oil and gas, power generation and marine propulsion industries.
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