LONDON (dpa-AFX) - John Wood Group Plc (WDGJF.PK, WG.L), a British engineering company, said on Wednesday that it has signed separate agreements to sell its stake in Ethos Energy Group Limited, a joint venture focused on rotating equipment, and CEC Controls Company Inc., an automotive industrial and process control systems business.
Upon the completion of the transaction, to be closed later in 2024, Wood expects net cash proceeds of around $125 million.
In addition, Wood will be issued loan notes by EthosEnergy which, on repayment around five years after completion, will generate further proceeds of up to $42 million, excluding interest.
Thus, together, the two businesses are expected to generate net proceeds of around $165 million in 2024, including loan notes of up to $42 million.
For 2023, these two businesses together had contributed $41 million to Wood's adjusted EBITDA.
Jennifer Richmond, Wood's Chief Strategy Officer, said: 'The sale of these two non-core businesses is further evidence of progress of our strategy. We continue to review Wood's portfolio in line with our strategic priorities to be selective in our markets and capabilities and steadfast in our commitment to simplify Wood and deliver greater cash flexibility.'
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