Wood Group acquires Infinity $150 million

Wood Group acquires Infinity for $150 million

9:36 AM, 4th December 2015
Wood Group acquires Infinity for $150 million

HOUSTON, US: Wood Group said that it has acquired Clute, Texas-based The Infinity Group (Infinity), a family-owned Texas Gulf Coast industrial construction and maintenance contractor serving the petrochemical, refining and gas processing sectors, for an initial consideration of $150 million.

The transaction is expected to be completed in late 2015.

Established in 1952, the Infinity existing management team will continue to lead the business, which has approximately 2,500 personnel. It currently has gross assets of around $92 million and is forecast to generate EBITA of $26 million in 2015.

Infinity will operate within the Wood Group PSN Americas business unit, creating a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and LNG sectors.

In collaboration with Wood Group Mustang, the acquisition also provides an opportunity to offer a turnkey design and construct industrial service offering.

The US downstream market offers significant growth opportunities and Infinity will provide a platform to grow geographically from the Texas Gulf Coast into neighbouring US markets.

“The addition of Infinity gives Wood Group PSN service line expansion, sector diversification and entry into the US petrochemical and other downstream sectors, coupled with access to new clientele,” said Dave Stewart, CEO, Wood Group PSN.

“Joining Wood Group allows us to expand our service offering to their diverse customer base and gives us exposure to larger scale projects while also continuing to serve our current market and clients,” said Harold Monical, Jr president of Infinity Construction Services.

If the current level of Infinity Group’s financial performance was to be maintained over the performance period, the total consideration payable in cash from available facilities would be around $176 million. The total consideration paid will not exceed $192 million, Wood said.

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