John Wood Group PLC (LSE:WG.) has agreed to sell off its Ethos Energy rotary equipment services joint venture for $137 million.
Buyer One Equity Partners will pay $95 million net cash on completion and $42 million in loan notes, to be repaid around five years after completion.
Wood said it expects this disposal, and the sale of CEC Controls, which it previously agreed for £30 million in cash, to close later this year.
Ethos generated underlying profits of $34 million in 2023 and CEC Controls $6 million.
Jennifer Richmond, Wood's chief strategy officer, said the sales of these non-core businesses "is further evidence of progress of our strategy" and the company will continue to review its portfolio in line with strategic priorities.
Broker Peel Hunt said the sales price of Ethos, representing 4.0x EV/EBITDA, was lower than 6.0x it expected, while the CEC sale price of 5.0x EBITDA was higher than the 3.0x it expected.