John Wood Group PLC said it agreed to sell its Built Environment consulting business to WSP Global Inc for about US$1.9bn (£1.5bn).
The FTSE 250 oilfield services firm said the net proceeds will be used mainly to reduce debt. It would have been in a net cash position at end December 2021 if the proceeds from this disposal were included rather than having net debt of US$1.4bn as previously reported.
It added that the proceeds would improve its financial flexibility and allow it to consider further options such as restoring an ordinary dividend payment to shareholders.
“This transaction will deliver significant value for our shareholders and marks a new chapter for Wood,” said Robin Watson, who has previously announced his plans to retire as chief executive.
“It enables us to move onto our next strategic phase with the financial flexibility to accelerate our strategy to capture the growth opportunities ahead across both energy security and sustainability.”
The sale is expected to be completed in the second half of 2022.
The company said its outlook for this financial year remains unchanged from that set out in its 2021 results announcement in April. Excluding the impact of the Built Environment sale, it expects higher revenue in 2022 across its business.