UK’s Wood Group Agrees to $291M Purchase by UAE-based Engineer Sidara

After multiple 12 months of a number of provides and protracted negotiations, engineer-contractor Wooden Group agreed Aug. 29 to a $292-million acquisition by Dubai-based Sidara, previously referred to as Dar Group, that the Scotland-based power providers agency stated will assist clear up its “near-term liquidity challenges.”

Underneath the deal, set to finish within the first half of 2026, Sidara will assume $1.6 billion of Wooden Group debt and supply $450 million in money to the financially strapped agency. The deal adopted the most recent of several time extensions this year to Sidara for a buyout provide.

Wooden Group had reported in February $5.7 billion in 2024 revenue. Sidara ranks at No. 21 on ENR’s record of the Prime 150 International Design Corporations, reporting a complete of $2.6 billion in international income final 12 months, all from work outdoors UAE.

Wooden Group revealed earlier this 12 months that an impartial audit by Deloitte it ordered of its accounting and company governance, which discovered “materials weak spot and failures” in firm operations, delayed publication of its year-end 2024 outcomes and prompted a separate probe by the UK monetary regulator. Wooden shares have been suspended from buying and selling since Could 1 on the London Inventory Trade. The problems additionally resulted in a significantly lower cost since negotiations started, with legal responsibility issues rising.

The corporate rejected a number of far greater valued proposals from Sidara in 2024, which topped at $1.93 billion, arguing they “undervalued the corporate and its prospects,” earlier than the UAE agency walked away from negotiations. That acquisition try occurred one 12 months after personal fairness agency Apollo International Administration withdrew an introduced buyout $2.1-billion provide.

“The present capital construction of the Wooden Group is unsustainable,” stated the corporate board in a press release. The present acquisition deal “represents the best choice for its shareholders, collectors and wider stakeholders,” it added, noting that it intends to “suggest unanimously” that shareholders vote for the proposal.

Chairman Roy Franklin is ready to step down on Jan. 7, 2026, when shareholders will vote on the acquisition, in response to the corporate. “It’s the unanimous view of the Wooden Board that that is the best choice for all stakeholders,” he stated in a press release.

“This transaction permits us to strengthen shopper relationships, develop into new markets and serve a broader vary of world shoppers,” Sidara CEO Talal Shair stated.  “Within the brief time period, our extra monetary help will deliver better stability, however our imaginative and prescient is for Wooden to take the lead in power and supplies.”

He stated Wooden Group would turn out to be Sidara’s power and supplies division and supposed to retain its model.

Difficult Chapter’

“This announcement brings us nearer to finalizing a difficult chapter in Wooden’s historical past,” stated CEO Ken Gilmartin. “The acquisition will clear up our near-term liquidity challenges and strengthen the corporate in the long run.”

The acquisition deal adopted Wooden Group’s settlement, additionally on Aug. 29, to promote its North American transmission and distribution engineering enterprise for $110 million to power providers agency Qualus because it goals to get rid of non-core companies to chop debt. That deal is ready to shut late this 12 months, Gilmartin stated. Wooden Group additionally is ready to shut a deal by early 2026 to promote its 50% stake in a fuel generators upkeep three way partnership to Siemens Vitality International for $135 million in money, the engineer stated. Louisiana power providers agency Danos additionally has purchased Wooden Group’s onshore U.S oil and fuel labor provide operations to develop its capability within the Permian basin and Eagle Ford shale area, each in Texas. Monetary phrases of the deal weren’t disclosed.

Wooden Group additionally offered its environmental consulting business to WSP Global in 2022 for about $`1.8 billion, with about 5,500 workers transferred. 

Regardless of its monetary challenges, Wooden Group has remained a worldwide power sector competitor.

The agency received a $2.8-billion EPCM contract earlier this 12 months from Abu Dhabi-owned ADNOC Fuel Ltd. for upgrades to its Habshan fuel facility.  Wooden anticipated about $400 million of income by means of its providers, with venture scope to incorporate substantial upgrades and de-bottlenecking to current Habshan and Habshan 5 fuel processing complexes and pipelines, together with brownfield modifications and set up of latest amenities. 

Habshan is likely one of the largest fuel course of complexes on the planet, ADNOC says. The venture scope is ready to finish on the finish of 2027.

Thai Oil Public Co. Ltd. additionally lately named Wooden Group to offer consulting engineering providers and CM oversight for its estimated $5-billion foremost refinery enlargement in Thailand to supply greater high quality transportation gas by 2028, additionally set to incorporate choosing a brand new venture EPC contractor. Contractors Bechtel and JGC Corp. are recognized as main candidates, stated monetary info sources  Kaohoon International and S&P Global

Wooden additionally received a $120-million two-year, cost-plus contract extension from oil large Shell for brownfield EPC providers for its onshore and offshore UK property, the engineer stated in early August.