Wood in £46m automation sector swoop

Oil and gas services giant Wood Group is stepping up its presence in the automation and controls market with the $59 million (£46m) acquisition of a US company. Aberdeen-based Wood Group, which already has a robotics arm that works with the likes of Jaguar Land Rover, is buying Detroit-headquartered CEC Controls.

The announcement came hours after Wood Group revealed that it has offered to sell the majority of Amec Foster Wheeler’s North Sea oil and gas business to avoid competition concerns over its £2.2 billion takeover deal.

Amec’s North Sea business employs around 4,200 people providing services including maintenance.

Management-owned CEC – which specialises in industrial and process control systems for the car industry – made an underlying pre-tax profit of $9.6m last year and also works for the likes of Ford and Fiat-chrysler.

Wood chief executive Robin Watson said: “CEC Controls significantly complements and strengthens the innovative technical solutions we provide to clients within automation and control.

“The acquisition supports the geographical broadening of our footprint within the automotive sector particularly in the US, deepening our presence in the key automotive hub of Detroit.”

He added: “It also provides us the opportunity to further enhance the industrial process and control capabilities we offer to this industry and adjacent sectors including aerospace, logistics, water, and pharmaceuticals.” 0 ‘Broadens footprint’ says CEO Robin Watson