John Wood Group#History

{{Short description|British multinational engineering and consulting company}}

{{Infobox company

| name = John Wood Group plc

| logo = File:John Wood Group logo.svg

| type = Public

| traded_as ={{lse|WG.}}

| ISIN = GB00B5N0P849

| founder = Ian Wood

| key_people = {{ubl|Roy Franklin (Chairman)|Ken Gilmartin (Chief Executive)}}

| industry = Energy and Materials

| products = Engineering and consulting

| revenue = {{increase}} US$5,900.7 million (2023){{cite web |url=https://www.woodplc.com/__data/assets/pdf_file/0026/256139/Wood-FY23-Statement.pdf |title=Annual Results 2023 |access-date=26 March 2024 |publisher=Wood Group}}

| operating_income = {{increase}} US$114.2 million (2023)

| net_income = {{increase}} US$(105.2) million (2023)

| num_employees = 35,000 (2025){{cite web |url=https://www.woodplc.com/company/our-business|title=Our business |date=5 February 2025 |publisher=John Wood plc|access-date=10 February 2025}}

| parent =

| subsid =

| homepage = {{URL|https://www.woodplc.com/}}

| footnotes =

| foundation = {{start date and age|1982}}

| location = {{nowrap|Aberdeen, Scotland, UK}}

}}

John Wood Group plc, commonly known as Wood, is a British multinational engineering and consulting business with headquarters in Aberdeen, Scotland. It is listed on the London Stock Exchange. As of February 2025, the group employs 35,000 people globally.{{Cite web |last=Cameron |first=Greig |date=2025-02-19 |title=John Wood finance chief quits over qualifications 'oversight' |url=https://www.thetimes.com/business-money/companies/article/john-wood-finance-chief-quits-over-qualifications-oversight-sz6z50nvt |access-date=2025-02-20 |website=www.thetimes.com |language=en}}

History

The business was founded in 1982 by Ian Wood, when it split away from JW Holdings, the largest fishing company in Scotland.{{cite web |url=http://www.woodgroup.com/about-us/our-heritage/pages/default.aspx |title=Wood Group Company History and Heritage |work=woodgroup.com |access-date=3 April 2015}}{{cite web |last=Gosden |first=Emily |url=https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9413395/Billionaire-Wood-Group-chairman-Sir-Ian-Wood-to-retire.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9413395/Billionaire-Wood-Group-chairman-Sir-Ian-Wood-to-retire.html |archive-date=12 January 2022 |url-access=subscription |url-status=live |title=Billionaire Wood Group chairman Sir Ian Wood to retire |work=The Daily Telegraph |date=20 July 2012 |access-date=20 July 2017}}{{cbignore}} Ian played a pivotal role in the management and direction of the company, being its chief executive officer (CEO) through to 2006 as well as its chairman through to 2012. From the 1980s through to the end of the 2000s, the Wood family held (via a series of charities and trusts) a sizable stake in the business, at one point as high as 40 percent of all available shares, giving them considerable sway over decision-making.{{cite web |url = https://www.telegraph.co.uk/finance/newsbysector/energy/8553348/Wood-Group-family-sell-most-of-stake-in-oil-services-company-for-366m.html |title = Wood Group family sell most of stake in oil services company for £366m |work = The Telegraph |first = Rowena |last = Mason |date = 3 June 2011 }}

From the onset of its operations, the company benefited greatly from a decision made by JW Holdings to diversify into the energy services business at the outset of the North Sea oil industry in the early 1970s.{{Cite news |last=Darroch |first=Valerie |url=http://findarticles.com/p/articles/mi_qn4156/is_20061231/ai_n17090647 |title=Boss of the year: Sir Ian Wood reveals the secret of his success as he gets ready for a new role |work=Sunday Herald |date=31 December 2006 |access-date=27 April 2008}}{{dead link|date=December 2016}}

In September 2000, John Wood Group acquired the Texas-based oil rig business Mustang Engineering Inc. for $137.5 million.{{cite web |url=http://connection.ebscohost.com/c/articles/3637792/wood-group-confirms-signing-mustang-deal |title=Wood Group confirms signing of Mustang deal |publisher=European Power News |date=September 2000 |access-date=7 April 2017}}{{dead link|date=November 2020|bot=medic}}{{cbignore|bot=medic}}{{cite web |url = https://www.heraldscotland.com/news/12184477.wood-group-harnesses-mustang-92m-texas-deal-boosts-oil-services-groups-presence-in-north-america/ |title = Wood Group harnesses Mustang #92m Texas deal boosts oil services group's presence in North America |website = heraldscotland.com |date = 19 July 2000}} Prior to the purchase, the business employed 6,000 staff worldwide while the purchase Mustang Engineering Inc, which was renamed Wood Group Mustang, added another 1,200 employees. Post-purchase, the entity has continued to operate as a subsidiary of John Wood Group.{{cite web |url = https://www.insider.co.uk/news/wood-group-mustang-agrees-partnership-9868711 |title = Wood Group Mustang agrees partnership for project delivery in China |website = insider.co.uk |first = Scott |last = McCulloch |date = 3 December 2014}}{{cite web |url = https://www.bbc.co.uk/news/uk-scotland-scotland-business-21411707 |title = Wood Group Mustang awarded £30m North Sea contract |publisher = BBC News |date = 11 February 2013}}

During 2002, following several years of speculation that the company would do so, John Wood Group was listed on the London Stock Exchange.{{cite web |url = https://www.bloomberg.com/news/articles/2002-05-10/intertek-wood-group-start-ipos-even-as-buyers-shun-new-equity |title = Intertek, Wood Group Start IPOs Even as Buyers Shun New Equity |work = Bloomberg |date = 10 May 2002}}

In 2011, the company sold off its well support division to General Electric (GE) in exchange for $2.8 billion (£1.73 billion); it also conducted unsuccessful negotiations with GE over prospective co-operation on its gas turbine business as well. That same year, the Wood family reduced their 11 percent stake in John Wood Group to 1 percent in exchange for £366 million.

During 2012, John Wood Group started providing environmental consultancy work to relation to Heathrow Airport's proposed expansion.{{cite web |url = https://www.woodplc.com/news/latest-news-articles/2018/runway-success |title = Runway success |publisher = John Wood Group |date = 2018 }} The company has also been involved in other transport infrastructure schemes, such as the potential reopening of the Watford and Rickmansworth Railway.{{cite web |url = https://www.newcivilengineer.com/latest/atkins-led-team-to-explore-options-to-transform-disused-watford-rail-line-25-08-2022/ |title = Atkins-led team to explore options to transform disused Watford rail line |publisher = New Civil Engineer |date = 25 August 2022 |first = Rob |last = Hakimian}}

In 2016, John Wood Group expanded its footprint in the North Sea oil sector through the purchase of the Aberdeen-based business Enterprise Engineering shortly after it had entered administration.{{cite web |url = https://www.telegraph.co.uk/business/2016/06/17/wood-group-buys-bankrupt-aberdeen-oil-engineering-firm/ |title = Wood Group buys bankrupt Aberdeen oil engineering firm |work = The Telegraph |first = Jillian |last = Ambrose |date = 17 June 2016}}

In March 2017, the company announced it would acquire its rival, Amec Foster Wheeler, in an all stock deal, valued at approximately £2.2 billion.{{cite news |url=https://www.bbc.co.uk/news/business-39253416 |title=Wood Group agrees takeover of rival Amec Foster Wheeler |work=BBC News |date=13 March 2017 |access-date=2 September 2020}} Following approval from the Competition and Markets Authority,{{cite web |url = https://www.gov.uk/cma-cases/john-wood-group-amec-foster-wheeler-merger-inquiry#:~:text=The%20CMA%20investigated%20the%20anticipated,of%20Amec%20Foster%20Wheeler%20plc. |title = John Wood Group / Amec Foster Wheeler merger inquiry |publisher = Competition and Markets Authority |date = 11 May 2017}} the transaction was completed on 9 October 2017.{{cite web |url=http://www.cityam.com/273549/wood-group-completes-gbp22bn-takeover-amec-foster-wheeler |title=Wood Group completes £2.2bn takeover of Amec Foster Wheeler |publisher=City AM |date=9 October 2017 |access-date=9 October 2017 |archive-url=https://web.archive.org/web/20171009235319/http://www.cityam.com/273549/wood-group-completes-gbp22bn-takeover-amec-foster-wheeler |archive-date=9 October 2017 |url-status=dead}} In the months following the transaction, John Wood Group opted to sell off some of the recently acquired portions of Amec Foster Wheeler, including its North Sea oil & gas interests and its North American nuclear operation.{{cite web |url = https://environment-analyst.com/global/60972/wood-divests-amec-fws-north-american-nuclear-business |title = Wood divests Amec FW's North American nuclear business |website = environment-analyst.com |date = 9 November 2017 }}{{cite web |url = https://www.telegraph.co.uk/business/2018/03/20/wood-group-vows-worst-behind-us-costly-takeover/ |title = Wood Group vows 'worst is behind us' after costly takeover |work = The Telegraph |first = Jillian |last = Ambrose |date = 20 March 2018}}

During the 2010s, John Wood Group was involved in the design and construction of several civil nuclear power stations across the UK.{{cite web |url = https://www.woodplc.com/news/latest-press-releases/2018/wood-secures-framework-contract-on-uk-new-nuclear-power-project |title = Wood secures framework contract on UK new nuclear power project |publisher = John Wood Group |date = 2018}}{{cite web |url = https://www.theengineer.co.uk/content/news/wood-to-lead-robotic-nuclear-decommissioning-project/ |title = Wood to lead robotic nuclear decommissioning project |website = theengineer.co.uk |first = Jason |last = Ford |date = 20 February 2018}}{{cite web |url = https://www.world-nuclear-news.org/Articles/Hitachi-appoints-three-further-Wylfa-Newydd-partne |title = Hitachi appoints three further Wylfa Newydd partners |website = world-nuclear-news.org |date = 22 October 2018}} In 2020, the company's nuclear division, including its decommissioning work at Sellafield, was sold to the American conglomerate Jacobs Engineering Group in exchange for £250 million. The proceeds of the sale were stated to by used to reduce company debt and support its increasing focus on growing areas like renewables.{{cite news |url=https://www.bbc.co.uk/news/uk-scotland-scotland-business-49405309 |title=Energy services giant Wood pulls out of UK nuclear |last=Black |first=Andrew |work=BBC News |date=20 August 2019 |access-date=28 August 2019}}{{cite web |url = https://www.building.co.uk/news/jacobs-snaps-up-woods-nuclear-business-for-250m/5104768.article |title = Jacobs snaps up Wood's nuclear business for £250m |website = building.co.uk |first = Tom |last = Lowe |date = 9 March 2020}}

In February 2022, John Wood Group announced that it would make a loss of approximately US$222million on an Aegis Ballistic Missile Defense System facility for the United States Army Corps of Engineers.{{cite news |url=https://www.reuters.com/business/energy/uks-wood-group-take-100-mln-charge-aegis-project-delays-results-2022-02-22/ |title=UK's Wood Group to take $100 million charge on Aegis project, delays results |date=22 February 2022 |newspaper=Reuters |access-date=23 February 2022}}

During June 2022, the company announced the sale of its built environment consulting business to WSP Global Inc in exchange for approximately US$1.9billion.{{Cite web |title=Wood to Sell Built-Environment Unit to WSP for $1.9 Billion |url=https://www.bloomberg.com/news/articles/2022-06-01/wood-to-sell-built-environment-unit-to-wsp-for-1-9-billion |access-date=8 November 2022 |website=bloomberg.com}}{{cite news |title=WSP completes £1.6bn John Wood E&I acquisition |url=https://www.theconstructionindex.co.uk/news/view/wsp-completes-16bn-john-wood-ei-acquisition |access-date=22 September 2022 |work=The Construction Index |date=22 September 2022}}

In April 2023, the American private equity firm Apollo Global Management, following four rejected bids to do so, walked away from negotiations to take over John Wood Group.{{cite web |url = https://www.reuters.com/markets/deals/apollo-global-says-does-not-intend-make-offer-uks-wood-group-2023-05-15/ |title = Wood Group shares sink after Apollo abandons 1.7 bln pound bid |work = Reuters |date = 15 May 2023}}{{cite web |url = https://www.heraldscotland.com/business_hq/23475355.john-wood-group-takeover-moves-high-inflation-miserable-news/ |title = John Wood Group takeover moves and high inflation are miserable news |website = heraldscotland.com |date = 24 April 2023 |first = Ian |last = McConnell}} During May 2024, the company rejected a £1.4bn takeover offer made by the Dubai-based competitor Sidara, which “fundamentally undervalued” the company.{{cite web |url = https://www.theguardian.com/business/article/2024/may/08/oil-services-company-john-wood-group-rejects-14bn-takeover-offer |title = Oil services company John Wood Group rejects £1.4bn takeover offer |work = The Guardian |first = Jillian |last = Ambrose |date = 8 May 2024}}{{cite web |url = https://www.reuters.com/markets/europe/sparta-capital-urges-wood-group-seek-sale-rethink-uk-listing-2024-04-16/ |title = Sparta Capital urges Wood Group to seek sale, rethink UK listing |work = Reuters |first = Nell |last = Mackenzie |date = 16 April 2024}}

In February 2025, the company's chief financial officer Arvind Balan resigned his position after his professional qualifications had been 'misstated'. In May 2025, the company's shares were suspended from listing on the London Stock Exchange after it failed to file financial statements on time.{{cite news|url=https://www.aberdeenlive.news/news/aberdeen-news/aberdeen-firm-wood-groups-shares-10147288|title=Aberdeen firm Wood Group's shares suspended from listing after failing to hit April deadline|date=1 May 2025|newspaper=Aberdeen Live|access-date=2 May 2025}}{{cite news|url=https://www.agcc.co.uk/news-article/wood-and-petrofac-shares-suspended|title=Wood and Petrofac shares suspended|newspaper=Aberdeen and Grampian Chamber of Commerce|date=1 May 2025|access-date=2 May 2025}}

Operations

Wood provides consultation, management of assets and engineering services for the energy and materials sector.{{cite web |last=Tani |first=Shotaro |date=23 August 2022 |title=Wood Group order book fills up as clients seek to prolong projects |url=https://www.ft.com/content/07d2eb06-0cad-4a54-973e-a5520c2c1800 |access-date=8 November 2022 |work=Financial Times}}