Wood Group Agrees to $110 Million Sale of North American Transmission & Distribution Business

Wood Group (LON:WG) announced an agreement to sell its North American Transmission & Distribution (T&D) engineering business to Qualus for $110 million in cash.

The move marks continued progress in Wood's ongoing disposal program of non-core assets.

The sale, which follows a competitive auction process, values North America T&D at 14.9 times adjusted EBITDA.

North America T&D provides power infrastructure engineering services across Canada and the USA, specializing in substations, transmission, distribution, and renewable generation. It employs around 250 people. Qualus is a power solutions firm focused on grid modernization, resiliency, security, and sustainability.

The transaction is expected to close in the third or fourth quarter of 2025. Wood intends to use the proceeds to reduce its net debt and for general corporate purposes.

The sale contributes to a total of approximately $275 million in disposal proceeds agreed upon so far in 2025, exceeding the company's initial target of $150 million to $200 million for the year.

This divestiture aligns with Wood's strategy to streamline its portfolio and focus on core businesses with higher growth potential.

The decision to sell North America T&D stemmed from a comprehensive evaluation of Wood’s various business segments.

This deal follows the previously announced disposals of Kelchner and Wood’s interest in RWG. By divesting non-core assets, Wood aims to mitigate the impact of negative free cash flow previously forecasted for the year.

CEO Ken Gilmartin stated, “We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus…We are now on track to exceed our previously announced target for disposal proceeds as we continue to simplify our portfolio.”