Wood Group agrees $38m sale of Terra Nova Technologies

Wood Group made further progress with its non-core asset disposal programme on Monday, announcing the sale of its conveying and material handling systems division Terra Nova Technologies.

The FTSE 100 firm said it was selling the business to Murray & Roberts Holdings subsidiary Cementation Americas.

Cash proceeds in respect of the disposal would be $38m, representing a multiple of 5.2x 2018 EBITA of $7.3m.

The sale remained subject to normal conditions, the Wood Group board said, with closing expected in the second quarter.

“Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers,” said Wood Group chief financial officer David Kemp.

“Wood's strategy going forward is to focus on asset light solutions rather than the manufacture [and] fabrication of equipment.

“The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”