UK’s Wood Group Agrees to $291M Purchase by UAE-based Engineer Sidara

After multiple 12 months of a number of gives and protracted negotiations, engineer-contractor Wooden Group agreed Aug. 29 to a $292-million acquisition by Dubai-based Sidara, previously often known as Dar Group, that the Scotland-based power companies agency stated will assist clear up its “near-term liquidity challenges.”

Underneath the deal, set to finish within the first half of 2026, Sidara will assume $1.6 billion of Wooden Group debt and supply $450 million in money to the financially strapped agency. The deal adopted the most recent of several time extensions this year to Sidara for a buyout supply.

Wooden Group had reported in February $5.7 billion in 2024 revenue. Sidara ranks at No. 21 on ENR’s listing of the Prime 150 International Design Corporations, reporting a complete of $2.6 billion in international income final 12 months, all from work outdoors UAE.

Wooden Group revealed earlier this 12 months that an impartial audit by Deloitte it ordered of its accounting and company governance, which discovered “materials weak point and failures” in firm operations, delayed publication of its year-end 2024 outcomes and prompted a separate probe by the UK monetary regulator. Wooden shares have been suspended from buying and selling since Could 1 on the London Inventory Change. The problems additionally resulted in a significantly cheaper price since negotiations started, with legal responsibility considerations rising.

The corporate rejected a number of far larger valued proposals from Sidara in 2024, which topped at $1.93 billion, arguing they “undervalued the corporate and its prospects,” earlier than the UAE agency walked away from negotiations. That acquisition try occurred one 12 months after non-public fairness agency Apollo International Administration withdrew an introduced buyout $2.1-billion supply.

“The present capital construction of the Wooden Group is unsustainable,” stated the corporate board in a press release. The present acquisition deal “represents the best choice for its shareholders, collectors and wider stakeholders,” it added, noting that it intends to “suggest unanimously” that shareholders vote for the proposal.

Chairman Roy Franklin is ready to step down on Jan. 7, 2026, when shareholders will vote on the acquisition, in accordance with the corporate. “It’s the unanimous view of the Wooden Board that that is the best choice for all stakeholders,” he stated in a press release.

“This transaction permits us to strengthen shopper relationships, increase into new markets and serve a broader vary of worldwide shoppers,” Sidara CEO Talal Shair stated.  “Within the quick time period, our further monetary assist will carry higher stability, however our imaginative and prescient is for Wooden to take the lead in power and supplies.”

He stated Wooden Group would grow to be Sidara’s power and supplies division and meant to retain its model.

Difficult Chapter’

“This announcement brings us nearer to finalizing a difficult chapter in Wooden’s historical past,” stated CEO Ken Gilmartin. “The acquisition will clear up our near-term liquidity challenges and strengthen the corporate in the long term.”

The acquisition deal adopted Wooden Group’s settlement, additionally on Aug. 29, to promote its North American transmission and distribution engineering enterprise for $110 million to power companies agency Qualus because it goals to eliminate non-core companies to chop debt. That deal is ready to shut late this 12 months, Gilmartin stated. Wooden Group additionally is ready to shut a deal by early 2026 to promote its 50% stake in a gasoline generators upkeep three way partnership to Siemens Vitality International for $135 million in money, the engineer stated. Louisiana power companies agency Danos additionally has purchased Wooden Group’s onshore U.S oil and gasoline labor provide operations to increase its capability within the Permian basin and Eagle Ford shale area, each in Texas. Monetary phrases of the deal weren’t disclosed.

Wooden Group additionally offered its environmental consulting business to WSP Global in 2022 for about $`1.8 billion, with about 5,500 workers transferred. 

Regardless of its monetary challenges, Wooden Group has remained a world power sector competitor.

The agency gained a $2.8-billion EPCM contract earlier this 12 months from Abu Dhabi-owned ADNOC Fuel Ltd. for upgrades to its Habshan gasoline facility.  Wooden anticipated about $400 million of income via its companies, with challenge scope to incorporate substantial upgrades and de-bottlenecking to current Habshan and Habshan 5 gasoline processing complexes and pipelines, together with brownfield modifications and set up of latest services. 

Habshan is likely one of the largest gasoline course of complexes on the planet, ADNOC says. The challenge scope is ready to finish on the finish of 2027.

Thai Oil Public Co. Ltd. additionally just lately named Wooden Group to supply consulting engineering companies and CM oversight for its estimated $5-billion principal refinery enlargement in Thailand to provide larger high quality transportation gasoline by 2028, additionally set to incorporate choosing a brand new challenge EPC contractor. Contractors Bechtel and JGC Corp. are recognized as main candidates, stated monetary info sources  Kaohoon International and S&P Global

Wooden additionally gained a $120-million two-year, cost-plus contract extension from oil big Shell for brownfield EPC companies for its onshore and offshore UK property, the engineer stated in early August.