LONDON: John Wood Group PLC on Friday said it has agreed to divest its 50 percent interest in RWG (Repair & Overhauls) Limited to Siemens Energy Global GmbH & Co. KG for $135 million in cash, marking another key step in Wood’s disposal program aimed at streamlining its portfolio and reducing net debt.
The transaction, subject to regulatory approvals, is expected to close in late 2025 or early 2026. RWG, a specialist in industrial aero-derivative gas turbine repairs and overhauls, is a joint venture between Wood’s wholly-owned subsidiary JWG Investments Limited and Siemens Energy Global, itself a unit of Siemens Energy AG.
“This sale is a significant milestone in our commitment to simplify Wood,” CEO Ken Gilmartin said. “It ensures continuity for RWG’s employees and customers, while helping to address our financial priorities.”
Wood has been actively shedding non-core operations to counter negative free cash flow and sharpen its strategic focus. The RWG sale contributes to its 2025 target of raising $150 million to $200 million from divestitures. Earlier transactions included the $30 million sale of Kelchner Inc. in April 2025, as well as the 2024 disposals of Wood’s stakes in EthosEnergy Limited and CEC Controls Company Inc.
According to Wood, RWG was valued at 6.6 times adjusted EBIT and 7.8 times its cash contribution to the company. Financial details released by Wood indicate its investment in RWG had a balance sheet value of $69.2 million at year-end 2023. That year, RWG generated $253.4 million in revenue and contributed $32.9 million in adjusted EBITDA to Wood’s results, including $9.3 million from an annual management charge and $20.4 million in adjusted EBIT.
Proceeds from the Siemens Energy transaction will be retained for general corporate use and used to reduce Wood’s net debt. Once complete, Wood will no longer receive dividends or management fees from RWG, nor account for its stake under the equity method.
Wood’s board said it considers the divestment to be in the best interests of shareholders. Financial impacts of the transaction are expected to be detailed following the audit of fiscal year 2024 results, which remains underway. The company does not anticipate material effects on its ongoing operations.