John Wood Group sells business to cut debt

Kaefer will pay up to £91m for Wood's industrial services business

Scottish energy services giant John Wood Group has announced the sale of its industrial services business to a German firm for up to $118m (£91m).

The deal with technical services provider Kaefer involves an initial payment of £80m, with a further payout of up to £11m "pending achievement of agreed financial goals".

Wood said the sale was part of its strategy to rationalise its portfolio.

Last August, Wood announced it was selling its nuclear business.

Cash proceeds from the two disposals will be used to reduce debt.

David Kemp, Wood's chief financial officer, said: "The sale of our industrial services business is the latest divestment aimed at maintaining our strong balance sheet and achieving our target leverage.

"As our focus has moved towards building a premium, differentiated and higher-margin business, the industrial services offering is no longer core to our strategy."

Aberdeen-based Wood's in­dus­trial ser­vices busi­ness em­ploys about 2,000 people at 16 loc­a­tions in the UK and Ire­land.

It provides ser­vices for in­dus­trial op­er­a­tions, such as the ap­plic­a­tion of pro­tect­ive coat­ings, thermal in­su­la­tion and pass­ive fire pro­tec­tion.