Wood Group acquires PSN for £600m

Image caption, Wood Group says the deal will allow it to expand and move into new locations.

13 December 2010

The Aberdeen energy services company Wood Group is to buy its rival PSN in a deal worth about £600m.

Wood said it would merge PSN with its own production facilities division.

PSN is an international energy services company employing more than 8,000 people worldwide and operating in 23 countries.

In a pre-close trading update for the year ending December, Wood Group said overall performance for the year would be slightly ahead of expectations.

PSN's chief executive officer (CEO) Bob Keiller will become chief executive of the combined production services business which will be known as Wood Group PSN.

Wood said the combined company would be a "global leader" in its field and would allow the group to expand into a number of important new locations.

Commenting on the acquisition, Allister Langlands, chief executive of Wood Group, said: "Wood Group PSN will have a larger footprint, deeper resources and capabilities and, by selecting best practices, be able to deliver additional added value to our customers."

Mr Keiller said: "This transaction positions us for the next stage of PSN's development, enabling us to strengthen our service capability to existing and new customers whilst providing enhanced career prospects for our people."