John Wood Group has agreed to sell its North American engineering business, North America Transmission & Distribution (T&D), to US firm, Qualus LLC.

North America T&D provides comprehensive power infrastructure engineering for substations, transmission, distribution and renewable generation across Canada and the USA.

The sale forms part of the British engineering firm’s previously announced disposal programme of non-core businesses, which has totalled $275m in disposals in the year to date.

This is ahead of its disposals target of between $150m and $200m in 2025.

The transaction, which is set to complete in the third or fourth quarter of this year, values North America T&D at 14.9 times its forecasted adjusted EBITDA for the current financial year.

The deal is set to provide Wood with cash proceeds, which will be used to reduce its net debt, and a simpler portfolio in line with its previously announced strategy.

The board at the Aberdeen-headquartered engineering firm said that it considers the transaction to be in the best interests of the company and its shareholders.

Chief executive officer at Wood, Ken Gilmartin, concluded: "We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus, following a highly competitive sale process.

"This sale, along with the sale of Kelchner and the agreement to divest our interest in RWG, has led to approximately $275m of disposal proceeds agreed so far this year. We are now on track to exceed our previously announced target for disposal proceeds as we continue to simplify our portfolio."

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