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John Wood Group To Acquire Production Services Network: A Move To Expand John Wood Group's Production Services Business Product Image

John Wood Group To Acquire Production Services Network: A Move To Expand John Wood Group's Production Services Business

  • ID: 1532081
  • January 2011
  • 9 pages
  • GlobalData

John Wood Group To Acquire Production Services Network: A Move To Expand John Wood Group’s Production Services Business - Deal Analysis From GlobalData

Summary

John Wood Group PLC (Wood Group), an energy service company, entered into an agreement to acquire Production Services Network Limited (PSN), an energy services company, for a purchase consideration of approximately $955m. Under the terms, Wood Group will pay $627m in a combination of cash and stock to PSN shareholders and will finance $328m of PSN’s net debt. Wood Group will issue 10.5 million new Wood Group shares at a price of £0.48 per share ($0.76 per share), valuing at $80m to the management vendors and to PSN's Employee Benefit Trust (EBT) at the time of completion of transaction.

Upon closing, PSN will merge with John Wood Group's production facilities business and will operate under the name, Wood Group PSN.

J.P. Morgan Cazenove Limited and Credit Suisse Group AG are acting as financial advisors and joint corporate brokers to Wood Group, while The Goldman Sachs Group, Inc. is acting as financial advisor to PSN for the transaction. The acquisition is subject to relevant anti-trust approvals and is expected to complete in the second quarter of 2011

Scope

- Rationale behind Wood Group acquiring PSN
- Strategic Benefits for the companies involved
- Geography covered -UK

Reasons to buy

- Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in European Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the UK oil & gas market
- Get a detailed analysis of a deal to enable you to take better decisions

1
1.1 List of Tables
1.2 List of Figures
2 John Wood Group To Acquire Production Services Network
2.1 Deal Overview
2.2 Deal in Brief
2.3 The New Entity Formed for the Production Services will be Wood Group PSN
2.4 Wood Group Intends to Achieve Long-Term Sustainable Growth
2.5 The Current Acquisiton will Enhance the Financial Performance of Wood Group
2.6 Wood Group Would Finance the Acquisition Through Equity and Debt
2.7 PSN’s Acqusition Would Provide for Enhanced Service Capabilities Across the Globe
2.8 Wood Group Is Concentrated on Growth Through Acquisitions and Partnerships
2.9 Deal Financials and Valuations
3 Appendix
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer

1.1 List of Tables
Table 1: Wood Group and PSN, Top 10 Customers
Table 2: Wood Group, PSN and Wood Group PSN, Proportion of Revenues by Geography, 2011 (Projected)
Table 3: Financing Of Acquisition, Details
Table 4: John Wood Group, Acquisitions and Partnerships Details, 2008-2010
Table 5: Companies Involved
Table 6: Financials of the Deal
Table 7: Advisor Information
Table 8: Target Company Information
Table 9: Acquirer Information

1.2 List of Figures
Figure 1: Wood Group PSN, Operations Map Post Current Acquisition
Figure 2: Wood Group PSN, Geographical Presence, 2011 (Forecast)
Figure 3: Wood Group PSN, Production Services, 2011 (Forecast)
Figure 4: Wood Group, Business Segment Comparison by Revenue, Before and After the Acquisition of PSN, 2010 (Forecast)
Figure 5: PSN, Operations Map

Note: Product cover images may vary from those shown

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