Amec, Foster Wheeler complete deal

OE Staff
Thursday, November 13, 2014

The US$7.8 billion combination of AMEC plc and Foster Wheeler AG is complete, creating Amec Foster Wheeler plc, a new force in global engineering, project delivery, asset support, power equipment and consultancy.

The new company, Amec Foster Wheeler, has a highly skilled workforce of over 40,000 in more than 50 countries, 2013 annualized scope revenues of $8.6 billion and a $9.9 billion order book. The combined company would have generated pro-forma trading profits of $819 million in 2013.

Amec Foster Wheeler designs, delivers and maintains strategic and complex infrastructure assets across a range of markets. It has a strong presence across the onshore and offshore oil and gas value chain – from production, through processing, gas monetization, midstream, oil refining and chemicals.

Amec Foster Wheeler is also a major player in the mining, clean energy, power generation, environment and infrastructure markets, using its increased scale to widen and deepen customer relationships. In addition, Amec Foster Wheeler is a leading designer, fabricator and supplier of advanced boiler systems for the power generation and industrial markets.

The combination strengthens its already considerable positions in North America and Europe and further enhances its established presence in growth markets of the Middle East, Asia and Latin America. Amec Foster Wheeler has more entrenched market presence and penetration prospects and will also enjoy a broader spread of customers among both independent oil majors and the world’s national oil companies.

Based on 2013 pro-forma numbers, 56% of its revenues came from oil and gas, 19% came from clean energy, 9% from environment and infrastructure, 8% from the global power division and 8% from mining.

The engineering and project delivery operations will be managed through three geographic business units: Americas; Northern Europe & Commonwealth of Independent States; Africa, Middle East, Asia & Southern Europe. The global power group, the power equipment business, will operate across all geographies.

These four business units will be supported by a global strategy and business development function - focused on the development of market and regional strategies, customer relationship management and business acquisition, and a project delivery function - to assure and drive project excellence and leverage Amec Foster Wheeler’s global talent and experience. High value execution centers and centers of expertise will support this activity.

Read more:

AMEC eyes Foster Wheeler

Categories: Engineering Contract

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