WG announces sale of Professional Services Segment

Willbros Group, Inc. has announced that, upon the recommendation of management, its Board of Directors has authorised management to pursue the sale of the Professional Services segment to bolster the company's balance sheet and enhance the long-term success of its core infrastructure construction services.

Management and the Board believe this transaction will create improved long-term value for Willbros customers and shareholders. Willbros will continue to provide the full suite of construction, maintenance and EPC services it currently offers through its Oil & Gas, Utility T&D, and Canada segments.

Willbros Chairman and Chief Executive Officer, John T. McNabb, II, emphasised, "We intend to focus on our position as a leading construction contractor in the North American energy infrastructure market and expect this focus to yield the greatest improvements in operating results and shareholder value. Completion of this transaction will strengthen our balance sheet, reduce the risk in our business model, and enhance our ability to win new work. We expect to effect this transaction and realise the benefits from our stronger financial position by the end of the third quarter. Additionally, we believe the revenue opportunities for Willbros going forward will be driven by construction services.

“We expect this transaction to enhance the Company's financial position and, through alliances, strategic partnerships and joint ventures on a project specific basis, we expect to continue to provide the construction services, including EPC project solutions, we have traditionally offered. The Professional Services segment has been a contributor for many years and we are confident that the experience and capabilities of its professional staff and management team, led by industry veteran Ed Wiegele, will benefit from new ownership that will provide them additional opportunities for growth."

Wiegele, Willbros Executive Vice President and President of Professional Services added, "This potential transaction will serve our employees and our customers well and allow us to continue to grow our services and customer base. The suite of Engineering, Integrity, Field, and Government Services offerings, built by our employees and focused on the energy market, is unparalleled in the industry. We also expect to continue a strong relationship with Willbros to maintain our upside opportunity for EPC/EPCM projects."

The Company noted that there can be no assurance that the decision to offer the segment for sale will result in the company pursuing a particular transaction or completing any such transaction. The company has not set a definitive timetable for completion of the process and does not intend to disclose further developments until its Board of Directors approves a specific action.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10062015/wg-announces-sale-of-professional-services-segment/