Wood Group has accepted a $291.5m (£216m) conditional takeover bid from Dubai-based Sidara, concluding a year-long process that involved several offers.
The deal includes Sidara assuming $1.6bn of Wood Group’s debt and infusing $450m of cash into the company.
This acquisition is subject to Wood Group publishing its overdue results before October 2025 and meeting certain debt facility conditions.
The British oilfield services company delayed its annual results in April due to an ongoing audit, causing a temporary halt in its share trading.
Since 2017, Wood has failed to produce any sustainable free cash flow due to various challenges including regulatory penalties, substantial unprofitable contracts, restructuring costs and legal settlements.
Considering this situation, Wood Group’s board has declared the current capital structure unsustainable.
Wood CEO Ken Gilmartin said: “This announcement brings us closer to finalising a challenging chapter in Wood’s history. The acquisition by Sidara will solve our near-term liquidity challenges and strengthen the company in the longer term.
“In Sidara, we will have an owner that values our people, brand and the deep client relationships we have built over the years and together we will be in a stronger position to deliver for our clients and achieve our potential.”
Earlier this week, Sidara revised its offer downwards following an investigation by Britain’s Financial Conduct Authority into Wood Group’s contracts and charges.
At the beginning of the takeover interest in 2023, Wood Group was valued at approximately £1.66bn, reported Reuters.
However, the company has since faced liquidity challenges, prompting it to announce additional cost-cutting strategies to be implemented through 2025.
On the same day as the takeover announcement, Wood Group disclosed plans to sell its North American transmission and distribution engineering business for $110m to reduce its debt.
Chairman Roy Franklin, who intended to depart once the company’s direction was determined, will now leave after a shareholder vote on the acquisition scheduled for 7 January 2026.
Sidara chairman and CEO Talal Shair said: “This is a transformational moment for our company. Through this move, Wood becomes part of Sidara, creating a global, world-class, privately held engineering and design group. In the short term, our additional financial support will bring greater stability, but our vision is for Wood to take the lead in energy and materials.
“We have always admired what Wood has built – its talented people, global clients and technical capabilities. This transaction allows us to strengthen client relationships, expand into new markets and serve a broader range of global clients. We look forward to realising Wood’s full potential within Sidara.”
Allen & Overy Shearman Sterling is serving as the primary legal counsel for Sidara, White & Case is providing guidance to Sidara regarding financing issues and Dickson Minto is offering advice on Scottish law matters.
Saranac Partners and RB&A Partners are both functioning as debt advisers to Sidara.
Slaughter and May is the principal legal adviser for Wood, with Burness Paull providing counsel on Scottish law matters for the company.
In a separate development, Shell UK has extended a contract with Wood worth $120m for brownfield engineering, procurement and construction (EPC) services across its UK assets.
The contract includes subsea and integrity management services for several onshore terminals and offshore assets, as well as EPC services for the Penguins FPSO, which is expected to reach peak production of 45,000 barrels of oil equivalent per day.
