John Wood Group PLC (LSE:WG.) has struck a deal to sell its North America transmission and distribution business to US power company Qualus for $110 million (£81.5m) cash.
The sale follows a competitive auction process, valuing the business at 14.9x adjusted EBITDA.
While Wood's board is also engaged in talks with Dubai's Sidara about taking over the core business, the disposal is part of a plan to sell non-core assets, with this sale taking agreed proceeds to $275 million this year.
Wood said it will use the funds to reduce net debt and for general corporate purposes.
Completion is expected in before the end of the year 2025, subject to conditions and approvals.
Wood CEO Ken Gilmartin said: “We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus, following a highly competitive sale process."
The sale means the group is on track to exceed the previously announced target for disposal proceeds, he added.
On Tuesday this week, Gilmartin and the board said they would be minded to accept a 30p-per-share takeover offer from Sidara.
The deadline for the Dubai-based suitor to make a firm offer was yesterday pushed back to 5pm today, with Wood saying it is still working with auditors to publish accounts for the 2024 financial year.