Wood Group (john) Plc (LON:WOOD) today announced further progress with its non-core asset disposal programme having agreed the sale of its Terra Nova Technologies business, a conveying and material handling systems solutions business, to Cementation Americas, a business owned by Murray & Roberts Holdings Ltd. Cash proceeds in respect of the disposal will be $38m, representing a multiple of 5.2x 2018 EBITA of $7.3m. The sale remains subject to normal conditions, with closing expected in Q2.
David Kemp, Wood chief financial officer commented: “Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers. Wood’s strategy going forward is to focus on asset light solutions rather than the manufacture / fabrication of equipment. The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”