Wood Group acquires Infinity for initial consideration of $150M

Wood Group has agreed to acquire The Infinity Group, a Texas Gulf Coast industrial construction and maintenance contractor serving the petrochemical, refining, and gas processing sectors, for an initial consideration of $150 million.

Wood Group states that the $150 million payable in cash at closing represents 85% of Wood Group’s current valuation of Infinity’s business. A potential further amount payable to the sellers in cash would be dependent on the future performance of the Infinity Group. If the current level of financial performance was to be maintained over the performance period, the total consideration payable in cash from available facilities would be around $176 million. The total consideration paid will not exceed $192 million.

Established in 1952, Infinity is headquartered in Clute, Texas, with six additional locations along the Texas Gulf Coast. The company provides a range of services including mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services. Its existing management team will continue to lead the business, which has approximately 2,500 personnel. Infinity currently has gross assets of $92 million and is forecast to generate EBITA of $26 million in 2015.

Infinity will operate within the Wood Group PSN Americas business unit, creating a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals, and LNG sectors. In collaboration with Wood Group Mustang, the acquisition also provides an opportunity to offer a turnkey design and construct industrial service offering.

The transaction is subject to a number of conditions, including US anti-trust approval, and completion is expected in late 2015.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Selection, Use, Care and Maintenance of FR Clothing

For industries operating in an inherently dangerous environment, the importance of selecting the ...

Evolution or Revolution: IT / OT convergence means a world of possibilities

The oil and gas industry is experiencing a rapid paradigm shift in regards to digital transformat...

Predict, Prescribe, Profit: Creating a World that Doesn't Break Down

What are you doing to reduce unplanned downtime at your plant? Equipment breakdowns and process i...

A Traders Guide to Analysis and Research

An e-book dedicated to helping you improve your analysis by looking at RBOB futures performance. ...