GE To Acquire Well Support Division of John Wood Group
GE’s Oil & Gas business has entered into an agreement to acquire the Well Support division of John Wood Group PLC (Wood Group) for US$2.8 billion (€2.1 billion). The transaction, which the Board of Wood Group intends to unanimously recommend to its shareholders, is expected to close later this year.
With 3800 employees, more than 20 manufacturing and multiple service centers worldwide, Wood Group's Well Support division comprises three business platforms: electric submersible pumps (ESP), pressure control (surface wellhead and flow control systems) and logging services (wireline logging).
In 2010, the Well Support division recorded revenues of US$947 million (€702 million) and EBITDA of US$166 million (€123 million) in unaudited estimates, for a growth of 16% and 55% respectively over 2009. The division, which generated 13% average annual revenue growth over the past decade, is expected by GE to generate US$1.1 billion (€816 million) in revenue and approximately US$200 million (€148.3 million) of EBITDA in 2011.
ESP deployment is one of the fastest growing segments in the oil and gas industry, GE said. The transaction will add ESPs to GE’s portfolio of drilling and production products.
For more information: www.ge.com