Wood Group enters oil sands
A subsidiary of Scottish-based John Wood Group has become the second international firm this year to acquire an engineering company with a major role in the Alberta oil sands.
In a US$140 million all-cash deal, it is buying out IMV Corp., whose 650 employees provide engineering, procurement and construction management services to the Canadian petroleum industry, with a heavy emphasis on in-situ oil sands projects.
Mike Straughen, group director and chief executive officer of Wood Group’s engineering activities, said IMV will work closely with other Wood units, including Mustang Engineering and JP Kenny in “heavy oil, Arctic, upgrading/downstream and trunkline sectors.”
The transaction follows the C$1 billion acquisition of Colt Engineering in February by Australia’s WorleyParsons.
Straughen said IMV will continue to function as a standalone business, building on its “leading position for in-situ heavy oil projects.”
Founded in 1999, IMV has operations in Western and Northern Canada, the Atlantic coast of Canada and the Middle East. It has pre-tax earnings of C$231.6 million for the year to August 2007.
Aside from the initial cash consideration, Wood Group will make three further cash payments in the period to 2014, based on the future performance of IMV.
Wood Group has 22,000 employees in 46 countries with annual sales of more than US$4 billion.