Sidara Eyes John Wood Amid £1.1B Valuation, 25% Share Drop

Key Takeaway

• Sidara is considering acquiring John Wood Group amid its 25% share price decline, with Wood's valuation at £1.1 billion.
• Despite previous interest from Apollo and pressure from Sparta Capital for strategic alternatives, no deal has yet materialized.
• Sidara boasts a global presence with $2.8 billion in revenue and a diverse portfolio in the design and engineering sector.

Acquisition Interest

Sidara, a family-owned engineering company previously known as Dar Group, is reportedly considering an acquisition of John Wood Group Plc, a firm listed on the London Stock Exchange. This interest arises as Wood's share price has seen a decline, with the stock jumping as much as 22% following the news. Over the past year, Wood's shares have decreased by approximately 25%, valuing the company at around £1.1 billion ($1.4 billion). However, it's important to note that these discussions are at a preliminary stage, and there is no guarantee that a deal will materialize. Both Sidara and Wood have refrained from commenting on the matter.

Market Movements

The potential acquisition news comes after a period of challenges for Wood, including a previous interest from Apollo Global Management Inc. Despite rejecting multiple offers from Apollo, Wood allowed the buyout firm to review due diligence materials after a final bid of £1.66 billion last April, which did not result in a takeover. Additionally, Wood investor Sparta Capital Management Ltd. has recently pushed for the company to consider strategic alternatives, including a possible sale, to enhance shareholder value.

Sidara's Global Presence

Sidara, established in Beirut in 1956 as Dar Al-Handasah, has grown into a significant player in the global design and engineering sector. With over 300 offices across 60 countries, Sidara reported revenues of $2.8 billion in the previous year. The company's diverse portfolio includes notable firms such as Perkins&Will, Currie & Brown, Penspen, Maffeis, and Introba, covering various aspects of engineering, architecture, and consultancy services. Last month, Sidara executed a sale of approximately 19% interest in Worley Ltd., an Australian infrastructure construction company, through a block trade, indicating its active management of investments.