Energy services giant Wood has announced the sale of its industrial services business to technical services provider Kaefer.
The deal involves an initial cash consideration of about $104 million (£80m) and a further potential payment of up to around $14m (£10.8m), pending achievement of agreed financial goals.
Aberdeen-based Wood said the divestment was “another important step” in its portfolio rationalisation strategy.
Wood’s industrial services business provides integrity and fabric maintenance for assets in the marine, process energy, offshore oil & gas and infrastructure sectors across the UK and Ireland.
The division employs around 2,300 people in the UK and Ireland.
The planned sale of the group’s nuclear business, which was announced in August 2019, is expected to complete before the end of March.
Cash proceeds from the disposals will be used to reduce debt.
Wood chief financial officer David Kemp said: “The sale of our industrial services business is the latest divestment aimed at maintaining our strong balance sheet and achieving our target leverage.
“As our focus has moved towards building a premium, differentiated and higher-margin business, the industrial services offering is no longer core to our strategy.
“However, it is an excellent fit with Kaefer, who see a clear opportunity to grow the business further and extend its market share across new sectors and geographies.”