Wood to sell conveyor systems business

Source: press release, 25 March 2019

Wood to sell Terra Nova Technologies, a conveying and material handling systems solutions business
Wood to sell Terra Nova Technologies, a conveying and material handling systems solutions business (photo: Wood plc)

Wood has announced further progress with its non-core asset disposal programme having agreed the sale of its Terra Nova Technologies business, a conveying and material handling systems solutions business, to Cementation Americas, a business owned by Murray & Roberts Holdings Ltd. Cash proceeds in respect of the disposal will be USD 38 million, representing a multiple of 5.2x 2018 EBITA of USD 7.3 million. The sale remains subject to normal conditions, with closing expected in Q2.

David Kemp, Wood chief financial officer comments, “Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers. Wood’s strategy going forward is to focus on asset light solutions rather than the manufacture/fabrication of equipment. The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”