John Wood Group PLC (Wood) has successfully completed the sale of its stake in EthosEnergy Group Limited, a joint venture that specializes in rotating equipment services. The transaction was finalized with One Equity Partners, resulting in a final net cash consideration of $138 million. This amount includes $42 million of prior planned loan notes, which were replaced with additional cash consideration at the time of completion.

EthosEnergy has been part of Wood's portfolio, focusing on providing services related to the maintenance and repair of critical equipment in the energy and industrial sectors. The joint venture has served a variety of industries with its specialized expertise in rotating equipment such as gas turbines, steam turbines, compressors, and other power generation components. However, this sale marks a strategic decision by Wood to focus on its core business and streamline its operations.

Ken Gilmartin, CEO of Wood, commented on the completion of the sale:

"We are pleased to complete the sale of EthosEnergy to One Equity Partners. This strategic divestment is part of our strategy to be selective and focused on our core business. We will continue to align our portfolio as part of our commitment to simplify Wood."

The sale of EthosEnergy is in line with Wood's broader strategy of simplifying and refocusing its portfolio. By divesting non-core assets, the company aims to concentrate its efforts on areas that are more aligned with its long-term objectives. This move reflects Wood’s commitment to improving operational efficiency and delivering greater value to its stakeholders.

The cash proceeds from the transaction will provide Wood with enhanced financial flexibility, enabling the company to reinvest in its core operations and accelerate its growth strategy in areas such as engineering, digital solutions, and energy transition services. The decision to sell EthosEnergy also highlights Wood's dedication to being more selective in its investments, ensuring that its resources are deployed where they can generate the most value.

This divestment marks a significant milestone in Wood's ongoing transformation, as it continues to refine its portfolio and focus on its strengths within the energy, engineering, and environmental sectors. It is expected to contribute to the company's overall strategy of simplifying its business operations while positioning it for future growth and success.

Wood held a 51% stake in the EthosEnergy joint venture alongside its partner, Siemens Energy AG. Both parties agreed on August 28, 2024, to sell the entire business to private equity firm One Equity Partners, with the deal officially closing on January 2, 2025.

EthosEnergy currently employs approximately 3,600 people worldwide and generated $34 million in adjusted EBITDA for Wood (as per Wood’s definition) in 2023, although no revenue was recognized in Wood’s financial results. EthosEnergy was part of Wood’s Investment Services business unit.