Wood Group sale completes

FTSE 250 engineering business Wood Group (LON:WG.) saw its share price drop by 16.39% to 268.90p (as of 14:30 GMT) after it closed the sale of its nuclear business for a cash consideration of $250 million. The price represented an EBITDA multiple of 12.4 and the proceeds will be used to reduce leverage as the company moves to optimise its portfolio focus.

CFO David Kemp commented: “Future portfolio optimisation will continue to be driven by our strategic objective of building a premium, differentiated, higher margin business focused on energy and built environment end markets. The sale of our nuclear business and other recent divestments have also enabled us to accelerate progress towards our leverage target“.