Aberdeen-based consulting and engineering group Wood yesterday announced it is selling its built environment consulting business to WSP Global for more than £1.5billion.
The unit has over 100 offices, predominantly in North America, with others located in the UK and elsewhere in Europe.
Built environment consulting employs around 5,500 consultants and technicians.
Canadian company WSP is one of the world's leading engineering professional services firms, with 37,000 people based in more than 500 offices, across 40 countries.
Wood chief executive Robin Watson said: "We are very pleased to have agreed this sale with WSP. This transaction will deliver significant value for our shareholders and marks a new chapter for Wood.
"It enables us to move onto our next strategic phase with the financial flexibility to accelerate our strategy to capture the growth opportunities ahead across both energy security and sustainability.
"We are focused now on the steps to complete this deal and in further developing our strategy, which we will outline in detail at a capital markets day when my successor as chief executive is in place."
Alexandre L'Heureux, president and chief executive Officer of WSP, added: "The addition of the built environment consulting business will allow us to expand our earth and environment leadership across our key markets and geographies. We share a common purpose of making the world a better place and our united forces will only further our expertise to create a more sustainable and resilient world."
Wood also said yesterday that the group's outlook for this financial year remains unchanged from that set out in its 2021 results announcement in April.
It added: "Excluding the impact of this sale, we expect higher revenue in 2022 across our business supported by the growth in our order book."
The transaction will provide the financial flexibility for Wood to deliver on its strategy to be a leader across energy security and sustainability through exposure to five key growth drivers:
- Energy security
- Carbon intensity reduction
- Industrial decarbonisation
- Resourcing the energy transition
- Low carbon energy
Wood explained: "These drivers provide significant growth opportunities for the group that, combined with our measured risk appetite, improved operational delivery and strong balance, sheet should help deliver value for our shareholders over the medium term."
Wood chief executive Robin Watson announced in April that he would retire from the role later this year.
Mr Watson has led the Aberdeen-based energy services giant since 2016.
He said the sale of Wood's built environment business marked the perfect time for him to hand over the reins to someone new.