Wood Group acquires Infinity Group
Wood Group acquisition of The Infinity Group for an initial consideration of $150 million
establishes US downstream brownfield capability
HOUSTON, December 3, 2015 - Wood Group has agreed to acquire 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[1].
Established in 1952, Infinity is headquartered in Clute, Texas, with six additional locations along the Texas Gulf Coast.
Infinity provides a range of services including mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services. The existing management team will continue to lead the business, which has approximately 2,500 personnel. Infinity currently has gross assets of around $92m and is forecast to generate EBITA of $26m 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 an excellent platform to grow geographically from the Texas Gulf Coast into neighboring US markets.
“The addition of The Infinity Group 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. Their 60-year history is a testament to the relationships they have built that we look forward to continuing and growing,†said Dave Stewart, Wood Group PSN CEO.
“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,†shared Harold Monical, Jr., president of Infinity Construction Services.
The transaction is subject to a number of conditions, including US anti-trust approval, and completion is expected in late 2015.
-ends-
Notes to Editors
Wood Group is an international energy services company with more than $7 billion sales and operating in more than 50 countries. The Group is built on Core Values and has three businesses – Wood Group PSN, Wood Group Kenny and Wood Group Mustang – providing a range of engineering, production support and maintenance management services to the oil and gas and power generation industries worldwide. Visit Wood Group at www.woodgroup.com and connect with us on LinkedIn and Twitter.
Wood Group PSN is a global provider of pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. Operating in more than 40 countries, Wood Group PSN offers high integrity, brownfield services that support customers to optimize performance, maintain production, reduce operating costs and provide integrity assurance. www.woodgroup-psn.com
The Infinity Group is a leading US industrial construction and maintenance contractor with in-house fabrication facilities providing services to the refining, petrochemical and gas processing industries primarily along the Texas Gulf Coast. www.inf-grp.com
Media Contact
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Investor/Analyst Inquiries
Andrew Rose
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[1] $150 million payable in cash at Closing representing 85% of our current valuation of the business. A potential further amount payable to the Sellers in cash would be dependent on the future performance of the Infinity Group. If the current level of financial performance was to be maintained over the performance period, the total consideration payable in cash from available facilities would be around $176m. The total consideration paid will not exceed $192 million.
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