Wood Group strikes £100m deal for US firm

Wood Group is a major player in the oil services sector
Wood Group is a major player in the oil services sector
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Aberdeen-based Wood Group is to expand its presence in the United States with the acquisition of a Texas-based business for an initial sum of $150 million (£100m).

The energy services heavyweight said today that it had agreed to buy The Infinity Group, a family-owned Texas Gulf Coast industrial construction and maintenance contractor serving the petrochemical, refining and gas processing sectors.

Established in 1952, Infinity is headquartered in Clute, Texas, with six additional locations along the Texas Gulf Coast.

The existing management team will continue to lead the business, which has about 2,500 personnel, Wood Group added. Infinity has gross assets of around $92m and is forecast to generate underlying earnings of $26m in 2015.

Infinity will operate within the Wood Group PSN Americas business unit, creating a “brownfield” service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and LNG sectors.

The deal is subject to a number of conditions, including US anti-trust approval, and completion is expected before the end of the year.

Dave Stewart, Wood Group PSN chief executive, said: “The addition of The Infinity Group gives Wood Group PSN service line expansion, sector diversification, and entry into the US petrochemical and other downstream sectors, coupled with access to new clientele.

“Their 60-year history is a testament to the relationships they have built that we look forward to continuing and growing.”

Harold Monical, president of Infinity Construction Services, added: “Joining Wood Group allows us to expand our service offering to their diverse customer base and gives us exposure to larger scale projects while also continuing to serve our current market and clients.”

Wood Group generates some $7 billion in sales and operates in more than 50 countries.