International energy services company John Wood Group PLC to acquire PSN Limited

John Wood Group PLC Tuesday announced it had entered an agreement to acquire PSN Limited. John Wood is an international energy services company and the acquisition is for a consideration of a total enterprise value of US$955 million. PSN will merge with Wood Group’s Production Facilities business to create the leading global brownfield production services provider, Wood Group PSN.

PSN is an international energy services company employing over 8,000 people worldwide and operating in 23 countries. In the year to 31 December 2010, PSN is expected to generate approximately US$100 million of EBITDA on revenues of approximately US$1,200 million.

Bob Keiller, PSN’s Chief Executive Officer will become Chief Executive Officer (CEO) of the combined production services business and the deputy CEO will be Les Thomas, currently CEO of Wood Group Production Facilities. On completion, Bob will join the Wood Group Board alongside Les Thomas.

The Acquisition of PSN advances Wood Group’s strategy of maintaining an appropriate balance between oil & gas development and later cycle production support, creating global market leading positions, developing long term customer relationships, extending services and broadening international reach, said the firm.

Wood Group PSN will be a global leader in brownfield production services and be well positioned for growth across the oil & gas industry through increased exposure to, what the Directors currently believe to be a global production services addressable market in excess of US$50 billion per annum. Other than that, the investment is also expected to strengthen Wood Group’s brownfield production services operations in many of its current locations and expanding into a number of important new locations.

Allister Langlands, Chief Executive of Wood Group, noted that Wood Group PSN will have a larger footprint, deeper resources and capabilities and, by selecting best practices, be able to deliver additional added value to its customers. The combined business will be better positioned to help tackle current key industry issues, including operational assurance, competency, reliability and asset integrity, he said.

Bob Keiller, CEO of PSN, who will lead Wood Group PSN, on his part, reiterated his believe that by uniting PSN with Wood Group Production Facilities, the firm will have a unique opportunity to grow its business to benefit its customers and people. Since the management buyout in 2006, the firm has achieved significant success and expansion, he added. This transaction positions PSN for the next stage of its development, enabling it to strengthen its service capability to existing and new customers whilst providing enhanced career prospects for its people, he said.

14 Dec 2010.