Wood Group to sell nuclear arm to Jacobs for £250m

The nuclear business designs, delivers and maintains strategic and complex nuclear assets for customers, primarily in the UK

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British energy services company John Wood Group has announced it is selling its nuclear business to US consultant Jacobs in a deal worth £250 million.

The nuclear arm designs, delivers and maintains strategic and complex nuclear assets for customers, primarily in the UK and employs around 2,000 people.

David Kemp, Wood’s Chief Financial Officer, said: “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy.

“Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.”

Jacobs believes the acquisition, which is subject to approval by the competition watchdog, will further strengthen its position in “highly profitable and complementary sectors” within nuclear and defence.

The company currently has a nuclear portfolio worth $1.2 billion (£0.99bn).

Chair and CEO Steve Demetriou said: “Given the compelling and synergistic git of our two organisations, we believe this transaction will translate into significant value for Jacobs’ shareholders, diverse opportunities for our employees and new, differentiated nuclear and defence solutions for our clients.”