From Glory to Takeover: The Fall of Wood plc and Its New Chapter Under Sidara

In a shocking turn of events, Wood plc, the once-mighty Aberdeen-based corporate player in the oil and gas sector, is set to be taken over by Sidara, a Dubai engineering firm. The decision comes after Wood’s value plummeted significantly, putting the firm at risk of collapse. A decisive shareholder vote saw 88% backing for the takeover, ending months of uncertainty surrounding the company’s financial reporting and pre-tax losses exceeding £2 billion.

Formally known as the John Wood Group, this company has a storied history, having peaked with a market valuation of over £5 billion in 2013 and employing more than 50,000 people globally. However, following a series of lucrative but burdensome acquisitions, including the takeover of AMEC Foster Wheeler, Wood began experiencing severe financial strain.

In 2017, under rising debts and ongoing legal challenges, management attempted to diversify its services beyond oil and gas into areas such as renewable energy and urban design, though increased contractual commitments led to significant losses. A previous acquisition proposal from Sidara of £1.6 billion fell through amid market uncertainties, but they returned this year with a reduced offer of just £216 million, coupled with a promise to inject £342 million into the company post-takeover.

As Wood reorganizes, it will revert to its original branding under Sidara, highlighting a fresh start for a company striving to recover from the brink of disaster. Changes in leadership are also on the horizon, with CEO Ken Gilmartin resigning post-deal and Iain Torrens, the current CFO, stepping into the role. The outgoing chairman, Roy Franklin, has also announced his departure, leaving a significant leadership vacuum as Sidara aims to leverage Wood’s brand for its engineering and materials division.