John Wood Group has sold its offshore labor supply operations in the Gulf of Mexico to Louisiana-based energy services contractor Danos.
The sale was for a cash consideration of $17 million, with Wood retaining working capital. This represents an EV/EBITDA multiple of around 8x, including the working capital.
Wood's offshore labor supply operations in the Gulf of Mexico contributed around $90 million of revenue and around $3.5 million of adjusted EBITDA in 2022. It employs around 700 people.
The net cash proceeds from this sale will further enhance the financial flexibility of the Group.
Ken Gilmartin, Wood's CEO, said: "This divestment signals the proactive steps we're taking to selectively high-grade the group's portfolio and invest in the markets and solutions where we see the strongest profitable growth.
"This is aligned to the strategy we set out in November 2022. Wood is committed to the USA with the Gulf of Mexico remaining an important region for our offshore consulting, capital projects and brownfield engineering businesses."
“We have been in the people business for 76 years,” said Eric Danos, CEO of Danos Ventures. “Providing highly skilled personnel to build, maintain and operate our customers’ assets safely is what we do. And we’re excited that this recent acquisition expands our ability to do that.”
Danos is a third-generation, family-owned and operated business headquartered in Gray, Louisiana. The company’s 2,700 employees serve nearly 175 customers across 21 states and the Gulf of Mexico.