Sunday, 09 December, 2018

WorleyParsons to acquire AFW UK

The acquisition will provide Worley Parsons with a “robust entry” into the UK North Sea market WorleyParsons to acquire AFW UK
Nellie Chapman | 10 October, 2017, 13:21

AFW UK is being sold to answer competition concerns raised with John Wood Group PLC's planned GBP2.23 billion takeover of rival Amec Foster Wheeler.

Australian engineering firm WorleyParsons Ltd said today it would buy the former upstream oil and gas assets of Britain's Amec Foster Wheeler Plc for £182mn, marking its entry into the UK North Sea market. He also spent 20 years at oilfield services firm Halliburton, including heading the Landmark software business.

Finance Director Nick Greatorex will continue to lead the company as interim CEO until November 30, it said.

"He brings strategic vision and a strong track record throughout his career of growing high value, technology-enabled services businesses through securing and developing major client relationships in both the private and public sectors".

He said the move would create a global MMO business to drive medium-term growth for WorleyParsons, which will fund the deal through a 1-for-10 pro-rata, accelerated non-renounceable entitlement offer of about $322 million and existing debt facilities.

"He shares my enthusiasm for the business and has the drive, ambition and ability to lead Capita to a successful future".

Capita shares were up 3.5 percent in early trading, among the top gainers on the United Kingdom midcap index.

UBS said while the CEO sucession has taken a long time, it is a positive that Lewis will start in December. Jon's business and leadership experience combined with an inspirational, collegiate style make him a great fit for Capita.

UBS added that market conditions remain challenging, and while a restructuring is underway it expects the new CEO to come back with a reinvigorated strategy.

The acquisition is expected to be completed by the end of October 2017.