Completion of Built Environment Consulting sale

John Wood Group PLC (‘wood‘ or ‘the group‘) is pleased to announce that it has completed the sale of its built environment consulting business (‘Consulting for the built environment’) to WSP Global Inc. (‘WSP’).

Details of the sale

The sale was completed for an enterprise value of $1,801 million1which corresponds to a 16-fold EV multiple including the expected unit costs.

Wood received $1,801 million in gross proceeds, which immediately reduced our net debt. Net proceeds from the sale, after estimated taxes and transaction costs, are expected to be approximately $1,672 million.


gross receipts


working capital


gross proceeds


Estimated taxes and transaction costs


Estimated net proceeds2


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Estimated tax costs of approximately $85 million will be paid next year, while estimated transaction costs of approximately $44 million will be paid this fiscal year, with approximately $10 million already paid in the first half.

Use of Proceeds

The completion of this transaction has reduced the Group’s net debt and restored our financial flexibility. We are currently evaluating our capital allocation options, with a particular focus on options that will improve free cash flow generation.

The Group’s target leverage ratio is a ratio of net debt (excluding leases) to Adjusted EBITDA of 0.5 to 1.5 over time. We expect our leverage to remain within this target range after allocating some capital to options to use the proceeds.

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Capital Markets Day

On November 29, 2022 we will host a Capital Markets Day to present our updated strategy in detail.

Ken Gilmartin, CEO said:

“We are very pleased to have completed the sale of our Built Environment Consulting business to WSP. This transaction marks a new chapter for Wood – the proceeds have transformed our balance sheet and restored the group’s financial flexibility.

“Wood has an exciting future ahead as we capitalize on growth opportunities in the energy and materials markets. We are developing our updated strategy and will provide more details, including our approach to capital allocation, at our Capital Markets Day in November.”

For more information:

Simon McGough, President, Investor Relations +44 (0)7850 978 741

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Kevin Smith, Citigate Dewe Rogerson +44 (0)7710 815 924

Holly Gillis, Citigate Dewe Rogerson +44 (0)7940 797 560

JP Morgan and Morgan Stanley acted as joint financial advisors to Wood on this transaction.

JP Morgan

Richard Perelmann, Alex Bruce +44 (0)20 7742 4000


Tom Perry, Matthew Jarman +44 (0)207 425 8000


  1. This compares to $1,810 million in the July 7, 2022 circular. The difference of $9 million relates to the built environment consulting business in Saudi Arabia, which will close at a later date.
  2. This compares to $1,623 million in the circular. The difference relates to working capital movements.

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