Wood Group had reported in February $5.7 billion in 2024 revenue. Sidara ranks at No. 21 on ENR's list of the Top 150 Global Design Firms, reporting a total of $2.6 billion in global revenue last year, all from work outside UAE.

An independent audit that Wood Group ordered of its accounting and corporate governance found "material weakness and failures" in company operations, the UK firm revealed earlier this year, which has delayed publication of its year-end 2024 results and prompted a separate probe by the UK financial regulator. Wood Group shares have been suspended from trading since May 1 on the London Stock Exchange. The issues also resulted in a considerably lower Sidara purchase offer since negotiations began, with liability concerns emerging.

The company rejected several far higher valued proposals from Sidara in 2024, which topped at $1.93 billion, arguing they "undervalued the company and its prospects," before the UAE firm walked away from negotiations. That acquisition attempt occurred one year after private equity firm Apollo Global Management withdrew an announced $2.1-billion buyout offer.

"The current capital structure of the Wood Group is unsustainable," said the company board in a statement. The current acquisition deal “represents the best option for its shareholders, creditors and wider stakeholders,” it added, noting that it intends to “recommend unanimously” that shareholders vote for the proposal.

Chairman Roy Franklin is set to step down on Jan. 7, when shareholders will vote on the acquisition, according to the company. "It is the unanimous view of the Wood Board that this is the best option for all stakeholders," he said in a statement.

"This transaction allows us to strengthen client relationships, expand into new markets and serve a broader range of global clients," Sidara CEO Talal Shair said.  “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.”

He said Wood Group would become Sidara's energy and materials division and intended to retain its brand.

'Challenging Chapter'

“This announcement brings us closer to finalizing a challenging chapter in Wood's history,” said CEO Ken Gilmartin. “The acquisition will solve our near-term liquidity challenges and strengthen the company in the longer term.”

The purchase deal followed Wood Group’s agreement, also on Aug. 29, to sell its North American transmission and distribution engineering business for $110 million to energy services firm Qualus as it aims to shed non-core businesses to cut debt. That deal is set to close late this year, Gilmartin said. Wood Group also is set to finalize a transaction by early 2026 to sell its 50% stake in a gas turbine maintenance joint venture to Siemens Energy Global for $135 million in cash, the engineer said. Louisiana energy services firm Danos also has bought Wood Group’s onshore U.S oil and gas labor supply operations to expand its capacity in the Permian basin and Eagle Ford shale regions, both in Texas. Financial terms were not disclosed.

Wood Group also sold its environmental consulting business to WSP Global in 2022 for about $`1.8 billion, with about 5,500 employees transferred. 

Despite its financial challenges, Wood Group has remained a global energy sector competitor.

The firm won a $2.8-billion EPCM contract earlier this year from Abu Dhabi-owned ADNOC Gas Ltd. for upgrades to its Habshan gas facility, with project scope to include substantial upgrades and de-bottlenecking to existing gas processing complexes and pipelines that will complete in 2027. .Habshan is one of the largest gas process complexes in the world, ADNOC Gas says.

Thai Oil Public Co. Ltd. also recently named Wood Group to provide consulting engineering services and CM oversight for its estimated $5-billion main refinery expansion in Thailand to produce higher quality transportation fuel by 2028, also set to include selecting a new project EPC contractor. Contractors Bechtel and JGC Corp. were identified as leading candidates, said financial information sources Kaohoon International and S&P Global.

Wood also won in recent weeks a $120-million two-year, cost-plus contract extension from oil giant Shell for brownfield EPC services on its onshore and offshore UK assets, and a three-year one of undisclosed value from Norway-based energy developer Equinor for its UK Mariner production field in the North Sea