Wood Group and Siemens form joint venture to create global integrated rotating equipment service provider

Wood Group and Siemens form joint venture to create global integrated rotating
                          equipment service provider

PR Newswire

ABERDEEN, Scotland, Oct. 9, 2013

ABERDEEN, Scotland, Oct. 9,2013 /PRNewswire/ --John Wood Group PLC ("Wood
Group" or the "Group") is an international energy services company employing
over 43,000 people worldwide and operating in over 50 countries. The Group
provides a range of engineering, production support, maintenance management
and industrial gas turbine overhaul and repair services to the oil & gas, and
power generation industries worldwide.

Executive summary

  oWood Group and Siemens AG ("Siemens") have entered into an agreement to
    form a joint venture ("JV") consisting of the Maintenance and Power
    Solutions businesses of Wood Group GTS ("GTS") (excluding its Rolls Wood
    Group, TransCanada Turbines and Sulzer Wood joint ventures)^1, and
    Siemens' TurboCare business unit ("TurboCare") which provides aftermarket
    gas turbine, steam turbine and generator design, repair and manufacturing
    services
  oThe Board believes that the establishment of the JV will improve the
    future prospects of Wood Group's gas turbine activities, which have
    typically delivered stronger performance when differentiated by a
    relationship with an original equipment manufacturer ("OEM")
  oThe JV will bring together two organisations with complementary strengths,
    customers and geographic exposure and will benefit from certain OEM
    know-how. The JV is expected to deliver annual net synergies to Wood Group
    of around $15m by year three
  oThe shareholding of the JV will be split 51%:49% Wood Group:Siemens. Wood
    Group currently expects that a further payment of up to approximately
    $70m will be due from the JV to Wood Group
  oCompletion is subject to a range of approvals and is expected in the first
    quarter of 2014
  oThe divisional CEO of GTS, Mark Dobler, will transfer to and lead the new
    JV on completion and leaves the Wood Group board
  oOn completion, all Wood Group's predominantly opex related gas turbine
    activities will be in joint ventures and will be reported within the Wood
    Group PSN division

Bob Keiller, CEO of Wood Group said:

"Today's announcement is an important step in the ongoing development of the
Group's strategy. The JV with Siemens will bring together two complementary
businesses and create a differentiated service offering for a global customer
base. Our joint ventures with OEM relationships typically deliver stronger
performance, and, as we look ahead, we see good potential for the JV."

Mark Dobler, CEO Wood Group GTS said:

"The JV will bring together Wood Group's capabilities in the areas of asset
operations, maintenance, risk management & life-cycle optimization with the
aftermarket design, repair & manufacturing capabilities of TurboCare to
deliver greater flexibility, greater market reach and an expanded footprint to
service customers. The JV will be a significant integrated rotating equipment
service provider to the global power generation, oil & gas and industrial
sectors. I look forward to leading the JV which will have approximately $1bn
of revenue and around 4,500 employees around the world."

Wood Group GTS www.woodgroupgts.com
TurboCare www.turbocare.com

SOURCE Wood Group

Website: http://www.woodgroup.com
Contact: Wood Group, Nick Gilman - Group Head of IR and Corporate
Communications, +44 1224 851 000, Andrew Rose - Investor Relations Manager,
Carolyn Smith - Director of Corporate Communications, Eastern Hemisphere;
Brunswick, Patrick Handley, +44 20 7404 5959, Rosheeka Field