Jacobs say they expect to close the acquisition by its fiscal 2020 second quarter and have agreed to pay £7.4 million to John Wood Group should the deal not go through.
David Kemp, John Wood Group’s chief financial officer, said, “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy.
“Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.”
Jacobs has an annual revenue of £9.8 billion, and over 50,000 employees. The American firm say that the acquisition will allow for growth in nuclear and defence across the UK, whilst also allowing the firm increased access to Europe and Asia.
Steve Demetriou, CEO of Jacobs, said on the deal, “This acquisition further strengthens Jacobs’ position in highly profitable and complementary sectors within nuclear and defence, enhancing our recognized program management skills with deep, technical expertise.
“We are excited to welcome these talented employees to the Jacobs’ team. Given the compelling and synergistic fit of our two organizations, we believe this transaction will translate into significant value for Jacobs’ shareholders, diverse opportunities for our employees and new, differentiated nuclear and defence solutions for our clients.”