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John Wood To Sell Its Built Environment Consulting Unit For $1.9 Bln; Backs FY22 Sales Outlook

John Wood Group Plc (WDGJF.PK,WG.L), a British engineering and consulting firm, said on Wednesday that it has signed a deal to sell its Built Environment consulting business to WSP Global Inc. for around $1.9 billion. In addition, the company has reiterated its sales guidance for the fiscal 2022.

The transaction, expected to be closed in the second half, is anticipated to provide enhanced financial flexibility to the seller to deliver its strategies. However, the primary and immediate use of the net cash proceeds will allow the company to reduce its net debt and strengthen the balance sheet.

As of December 31, 2021, the Group's net debt was at $1.4 billion and the firm's net debt to adjusted EBITDA ratio was 3.3 times.

Commenting on the deal, Robin Watson, chief executive, said: "It enables us to move onto our next strategic phase with the financial flexibility to accelerate our strategy to capture the growth opportunities ahead across both energy security and sustainability."

The Group also reaffirmed its sales outlook for full year. In its previous guidance it had stated: "We expect higher revenue across our business supported by the growth in our order book, with revenue in our order book for 2022 of $4,655 million, up 6 percent on comparable figure last year."

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