Wood Group Acquires Santos Barbos in Brazil
Wood Group Engineering & Production Facilities Brasil Ltda, a subsidiary of John Wood Group PLC, has acquired 51% of Santos Barbosa Técnica Comércio e Servicos Ltda, a Macae-based provider of offshore modifications and maintenance services to the Campos Basin in the Brazilian offshore market. The initial cash consideration being paid for Santos Barbosa is approximately $2.9 million including acquired debt, plus further payments between 2004 and 2007. An additional 29% of the company will be acquired in 2007; the value of all future payments will be dependent upon company performance.
'We believe Brazil offshore has the potential to be an important market for Wood Group and the acquisition of Santos Barbosa gives us a key presence in the country,' explained Bill Edgar, Group director responsible for Wood Group's Engineering and Production Facilities business. 'We intend to use our wide international offshore experience to augment Santos Barbosa's significant indigenous capability in the modifications and maintenance of offshore facilities and to grow a successful Brazilian company.'
Established in 1995, Santos Barbosa employs approximately 700 personnel, the majority of whom work offshore. José Augusto Barbosa Reis will continue in his role as president of the company.