Wood Group Engages with Apollo on Buyout
British multinational engineering and consulting business Wood Group has decided to engage with private equity firm Apollo Management, which has made a fifth offer valuing the group at about $2 billion.
Apollo is now required to announce a firm intention to offer for the Aberdeen, Scotland-headquartered company by May 17, which is an extension to the previous deadline of Apr. 19. However, Wood noted that it can further extend the deadline with the consent of the UK’S Takeover Panel.
Until now, Wood has rejected four prior proposals from Apollo, made in January, February and March this year. However, after receiving Apollo’s latest – and final – offer and taking into account feedback from its shareholders, Wood has now given the private equity company access to due diligence materials, although it cautions that “there can be no certainty that any offer will be made”.
The board adds that it “remains confident in Wood’s strategic direction and long-term prospects, following a transformative year in 2022, including new executive leadership and a new strategy.”
Last month, Apollo also agreed to acquire US multinational chemical distribution group Univar Solutions for $8.1 billion.
Author: Elaine Burridge, Freelance Journalist
