Wood Group has agreed to a US$291.5 million (£216m) conditional takeover by Dubai-based Sidara, marking the culmination of a year-long process that saw multiple bids for the struggling British oilfield services company.
The deal will see Sidara assume US$1.6 billion of Wood’s debt and inject US$450 million of fresh cash into the company.
However, the acquisition comes with caveats.
“This acquisition is subject to Wood Group publishing its overdue results and meeting certain debt facility conditions,” the two companies confirmed.
Wood is expected to release its delayed annual results before October 2025.
In April, the firm postponed publication due to an extended audit, which temporarily halted share trading.
The company has battled persistent financial woes.
Since 2017, it has been unable to generate sustainable free cash flow, weighed down by regulatory penalties, loss-making contracts, restructuring charges, and costly legal settlements.
The Wood board has acknowledged that its current capital structure is “unsustainable”.
Chief Executive Ken Gilmartin described the takeover as a turning point.
“This announcement brings us closer to finalising a challenging chapter in Wood’s history,” stated Gilmartin.
“The acquisition by Sidara will solve our near-term liquidity challenges and strengthen the company in the longer term.
“In Sidara, we will have an owner that values our people, brand and the deep client relationships we have built over the years and together we will be in a stronger position to deliver for our clients and achieve our potential.”
Sidara revised its offer earlier this week, lowering its bid after the Financial Conduct Authority launched an investigation into Wood’s contracts and billing practices.
The UK-based company was once valued at around £1.66 billion in 2023, according to Reuters, but liquidity pressures and spiralling costs have since eroded its worth.
As part of its restructuring, Wood announced the $110 million sale of its North American transmission and distribution engineering business, a move aimed at reducing debt.
Chairman Roy Franklin will step down following a shareholder vote on the Sidara takeover, scheduled for 7 January 2026.
Sidara chairman and CEO Talal Shair said the acquisition would be pivotal for the Dubai-based group.
“This is a transformational moment for our company,” said Shair.
“Through this move, Wood becomes part of Sidara, creating a global, world-class, privately held engineering and design group.
“In the short term, our additional financial support will bring greater stability, but our vision is for Wood to take the lead in energy and materials.
“We have always admired what Wood has built – its talented people, global clients and technical capabilities.
“This transaction allows us to strengthen client relationships, expand into new markets and serve a broader range of global clients.
“We look forward to realising Wood’s full potential within Sidara.”
The legal and advisory teams reflect the complexity of the deal: Allen & Overy Shearman Sterling is acting as Sidara’s main legal counsel, with White & Case advising on financing and Dickson Minto covering Scottish law.
Saranac Partners and RB&A Partners are serving as Sidara’s debt advisers.
For Wood, Slaughter and May is providing primary legal guidance, alongside Burness Paull for Scottish legal matters.
Meanwhile, Wood received a boost in its core services business with a contract extension from Shell UK worth US$120 million.
The deal covers brownfield engineering, procurement, and construction (EPC) services across Shell’s UK assets, including subsea projects, asset integrity management, and EPC services for the Penguins floating production, storage, and offloading vessel (FPSO), which is expected to reach peak output of 45,000 barrels of oil equivalent per day.
The Sidara takeover, though conditional, sets the stage for the next, critical phase of Wood Group’s future — one that could determine whether the 111-year-old business can successfully reposition itself in the global energy sector.