Wood Group buys US-based Infinity for USD130m

Energy services company Wood Group said it is buying Texas-based industrial construction and maintenance contractor Infinity Group for an initial $150m (£100m).

Infinity serves the petrochemical, refining and gas processing sectors, providing a range of services including mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services.

The existing management team will continue to lead the business. Infinity currently has gross assets of around $92m and is forecast to generate EBITA of $26m in 2015.

Wood said 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 US downstream market offers significant growth opportunities and Infinity will provide an excellent platform to grow geographically from the Texas Gulf Coast into neighboring US markets,” Wood said.

The transaction is subject to a number of conditions, including US anti-trust approval, and completion is expected in December 2015.