A Scottish energy services company has announced it is selling its nuclear business to a US firm for £250 million.
John Wood Group plc, which is involved in work to decommission the Sellafield nuclear plant, announced today (20 August) that it will sell the business to a subsidiary of US company Jacobs.
The deal, subject to approval from the Competition and Markets Authority (CMA), is expected to be closed before the end of Q1 next year.
In circumstances where the deal is not cleared by the CMA, Jacobs will pay Wood a fee of £7.5 million.
Wood says cash proceeds from the development will be used to reduce debt and will enable it to take a “significant step” towards achieving its target leverage policy.
David Kemp, Wood’s chief financial officer, said: “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy.
“Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.”
Wood operates in 60 countries and employs around 60,000 people globally.