WorleyParsons said it has entered into a binding agreement to acquire Amec Foster Wheeler (AFW) for an enterprise value of £182 million (A$303 million), pre-adjustments for surplus working capital and cash in the AFW UK business.
The combination of the acquisition and the entitlement offer is expected to be EPS accretive in the first year of ownership (pre-synergies, transaction costs and acquisition related amortisation).
The business represents the majority of Amec FosterWheeler’s former UK upstream Oil and Gas operations, to be divested as a remedy to competition concerns raised in relation to the John Wood Group’s acquisition of Amec FosterWheeler.
WorleyParsons CEO, Andrew Wood, said: “AFW UK represents an attractive acquisition for WorleyParsons. We are excited to enter the UK North Sea market as a leading player based in Aberdeen. AFW UK is a world class integrated solutions business with best in class MMO capabilities and an excellent track record of international expansion. We look forward to combining AFW UK’s capabilities with our international platform to create a global MMO business capable of driving medium term growth.”
The Acquisition will be funded through a 1 for 10 fully underwritten, pro-rata, accelerated nonrenounceable entitlement offer of approximately $322 million and existing WorleyParsons debt facilities.