Amec Foster Wheeler lands share of £767m USAF deal after Wood move

AMEC Foster Wheeler has secured a slice of a $950 million (£767m) contract with the US Air Force (USAF), after Wood Group made a £2.2 billion swoop for the firm.

The FTSE 250 company said it would maintain Air Force and US Department of Defense (DoD) sites across the globe as part of a five-year deal with the US Air Force Civil Engineer Centre (AFCEC).

The energy-to-infrastructure company will compete for contracts to remove unexploded bombs and hazardous waste, alongside design and build orders for construction, renovation, site work and demolition.

Ann Massey, Amec’s president of environment and infrastructure business, said the deal would put it in a “prime position” for installations work with the USAF.

“We are honoured to receive this contract, which is a testament to our proud history of successfully delivering on AFCEC projects for more than 25 years and builds upon our strategy to increase our work with the DoD,” she added.

The contract boost comes after rival oil services firm Wood Group reached an agreement on Monday to snap up Amec Foster Wheeler in a move that could lead to £110m worth of savings a year and is likely to affect administrative jobs across the combined group. Wood Group employs 29,000 while Amec has 35,000 workers and the new entity would be valued at around £5bn.

Debt-laden Amec had planned to launch a £500m rights issue to bolster its balance sheet, but those plans have been suspended following the offer.

Shares in Amec Foster Wheeler were down just under 1 per cent yesterday.