After more than one year of multiple offers and protracted negotiations, engineer-contractor Wood Group agreed Aug. 29 to a $292-million acquisition by Dubai-based Sidara, formerly known as Dar Group, that the Scotland-based energy services firm said will help solve its “near-term liquidity challenges.”
Under the deal set to complete in the first half of 2026, Sidara will assume $1.6 billion of Wood Group debt and provide $450 million in cash for the financially strapped firm. The deal followed the latest of several time extensions this year to Sidara, which resulted in a considerably lower price since negotiations began.
Wood Group had reported $5.7 billion in 2024 revenue in February. Sidara ranks at No. 21 on ENR’s list of the Top 150 Global Design Firms, reporting a total of $2.6 billion of global revenue last year, all based outside UAE.
Wood Group revealed earlier this year that an independent review of its accounting and corporate governance has delayed publication of its year-end 2024 results and prompted a separate probe by the UK financial regulator. Wood shares have been suspended from trading since May 1 on the London Stock Exchange.
“The current capital structure of the Wood Group is unsustainable,” said the company board in a statement. The acquisition “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, 2026, 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 intends to retain its brand.
“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 dispose of non-core businesses to cut debt. That deal is set to close late this year, Gilmartin said.
