Amec Foster Wheeler

Amec Foster Wheeler was a British multinational engineering, consultancy and project-management group headquartered in London. It was created in November 2014 when AMEC completed its acquisition of Foster Wheeler, combining two engineering-services businesses with substantial activities in energy, power, industrial processing, infrastructure, environmental services, resources and nuclear consulting. The resulting group worked primarily on complex capital projects and operating assets rather than consumer products. Its services included strategic and technical consulting, feasibility studies, engineering design, procurement support, project and construction management, commissioning, maintenance, asset integrity, environmental assessment and operational improvement. The company inherited a broad international platform from AMEC and Foster Wheeler. It employed more than 40,000 people and operated in more than 55 countries, with geographic business units covering the Americas; Northern Europe and the Commonwealth of Independent States; and Asia, the Middle East, Africa and Southern Europe. A separate Global Power Group supplied power-generation equipment and related engineering capabilities internationally. Its customer base included energy companies, utilities, industrial manufacturers, governments, infrastructure owners and other public-sector organizations. Amec Foster Wheeler was particularly exposed to oil and gas and other energy markets. When global oil prices declined, many clients reduced capital expenditure, placing pressure on the group's revenue, debt service and profitability after the Foster Wheeler transaction. In 2015 the company redirected emphasis toward brownfield work and activities outside the United States, increased its cost-reduction target and reduced its final dividend. These financial and operational pressures contributed to chief executive Samir Brikho leaving the business in January 2016. In March 2017, Wood Group announced an agreement to acquire Amec Foster Wheeler for approximately £2.2 billion. The transaction received Competition and Markets Authority approval and completed on 9 October 2017. Amec Foster Wheeler therefore ceased to operate as an independent listed company. Wood Group subsequently reorganized the acquired portfolio, including selling or separating parts of its North Sea oil-and-gas interests and North American nuclear activities, closing some offices and rebranding certain businesses. The Amec Foster Wheeler name is therefore mainly historical, although some of its capabilities and operations continued within Wood Group and successor businesses. The company's predecessor AMEC was itself formed in 1982 through the amalgamation of Leonard Fairclough & Son and the William Press Group. AMEC expanded through acquisitions in engineering, environmental, nuclear, resources and project-services businesses, while Foster Wheeler brought a long-established international engineering and energy-services business. The combination created a larger end-to-end technical-services provider, but also made the merged group sensitive to the cyclical downturn affecting its core energy markets.

Amec Foster Wheeler emerged from the combination of AMEC and Foster Wheeler, two engineering businesses with long histories in construction, energy, industrial processing and technical consulting. AMEC was formed in 1982 through the amalgamation of Leonard Fairclough & Son and the William Press Group. It expanded in 1988 by acquiring Matthew Hall Group and later built a broader international platform through acquisitions and disposals in engineering, construction, environmental consulting, nuclear services, resources and project management. During the 1990s AMEC considered and resisted several possible combinations. Norwegian engineering group Kvaerner pursued a potential acquisition and later made a hostile bid, while AMEC separately sought a merger with Alfred McAlpine; neither proposed combination produced the intended result. In 1996 AMEC acquired a 40% interest in Spie Batignolles and developed the AMEC Spie engineering brand. Its rail interests operated through AMEC Spie Rail, while the construction arm was later separated and sold through a management buyout. AMEC eventually took full control of the remaining Spie activities before disposing of the European engineering business in 2006. AMEC continued a significant acquisition program in the 2000s. It bought North American environmental and engineering businesses, oil-and-gas engineering capabilities, nuclear consultancies and project-services firms. Acquisitions included Ogden Environmental & Energy Services, AGRA Monenco, Paragon Engineering Services, NNC, Rider Hunt International, Geomatrix Consultants, AllDeco, Performance Improvement Group, Journeaux, Bedard & Associates, GRD, Entec UK, BCI Engineers & Scientists, MACTEC and Zektin Group. At the same time, the company sold or separated various construction, plant-hire, Australian technical and European engineering businesses as it concentrated more heavily on consultancy, engineering and project services. AMEC also participated in major infrastructure and public-sector work. Through a joint venture with Fluor, it received a multi-year contract in 2004 to support reconstruction of Iraqi infrastructure after the 2003 invasion. The arrangement generated limited initial profit and slow revenue, although AMEC remained involved in Iraq into the late 2010s. AMEC's earlier and inherited project portfolio included work associated with dams, hospitals, roads, rail extensions, public offices and major commercial buildings. In January 2014 AMEC agreed terms for the acquisition of Foster Wheeler, and the purchase completed on 13 November 2014. The group was renamed Amec Foster Wheeler. Foster Wheeler added international engineering and consulting capabilities in energy, chemicals, power and infrastructure, while AMEC contributed its own global project-delivery, environmental, resources and nuclear businesses. The combined organization employed more than 40,000 people in over 55 countries and operated through regional engineering and project-delivery units alongside a worldwide Global Power Group. The merger occurred just before a major decline in oil prices and energy-sector capital spending. Because oil and gas companies were important customers and the acquisition had increased debt, the downturn created substantial financial pressure. In 2015 Amec Foster Wheeler announced a strategic emphasis on brownfield projects and markets outside the United States, raised its cost-saving objective to $180 million by 2017 and reduced its final dividend. Chief executive Samir Brikho stepped down in January 2016. Wood Group announced its proposed acquisition of Amec Foster Wheeler in March 2017. Regulatory approval was obtained from the Competition and Markets Authority, and completion took place on 9 October 2017. The independent listed company was then absorbed into Wood Group. Wood subsequently sold or separated some acquired activities, including North Sea oil-and-gas interests and a North American nuclear operation, while also closing offices and undertaking a rebranding program. The former company's legacy was later affected by enforcement proceedings concerning historical corruption allegations. In July 2021 the UK Serious Fraud Office entered into a deferred prosecution agreement with Amec Foster Wheeler Energy Limited concerning corrupt agents used in the oil-and-gas sector. The agreement formed part of a global settlement involving UK, US and Brazilian authorities. This enforcement matter is associated with the former company's historical operations and does not indicate that Amec Foster Wheeler continued as an independent operating group after 2017.

• 2021

  Deferred prosecution agreement

  [2]SFO agrees deferred prosecution agreement with Amec Foster Wheeler Energy Limitedsfo.gov.uk

  The UK Serious Fraud Office enters a deferred prosecution agreement concerning historical use of corrupt agents in the oil-and-gas sector.

• 2017

  Wood Group completes acquisition

  [1]Amec Foster Wheeleren.wikipedia.org

  Wood Group completes its acquisition on 9 October after regulatory approval, ending Amec Foster Wheeler's independent corporate existence.

• 2015

  Strategic response to the oil-price downturn

  [1]Amec Foster Wheeleren.wikipedia.org

  The group increases its focus on brownfield work and non-US activities while implementing a larger cost-reduction program.

• 2014

  Foster Wheeler acquisition is completed

  [1]Amec Foster Wheeleren.wikipedia.org

  AMEC completes the acquisition of Foster Wheeler on 13 November and adopts the Amec Foster Wheeler name.

• 2010

  AMEC acquires Entec UK

  [1]Amec Foster Wheeleren.wikipedia.org

  The purchase strengthens AMEC's environmental consultancy and engineering activities in the United Kingdom.

• 2004

  Iraq infrastructure reconstruction contract

  [1]Amec Foster Wheeleren.wikipedia.org

  AMEC and Fluor receive a multi-year contract connected with reconstruction of Iraqi infrastructure.

• 1996

  AMEC takes a stake in Spie Batignolles

  [1]Amec Foster Wheeleren.wikipedia.org

  AMEC acquires a 40% interest and develops the AMEC Spie engineering platform in Europe.

• 1988

  AMEC acquires Matthew Hall Group

  [1]Amec Foster Wheeleren.wikipedia.org

  The acquisition expands AMEC's engineering and technical-services capabilities.

• 1982

  AMEC is formed

  [1]Amec Foster Wheeleren.wikipedia.org

  Leonard Fairclough & Son and the William Press Group combine to form Amalgamated Mechanical Engineering and Construction, later known as AMEC.

An international, technically integrated engineering and professional-services provider for energy, industrial, infrastructure, environmental, resources and public-sector clients.

• Professional services

  Engineering and technical consultancy

  Amec Foster Wheeler provided multidisciplinary engineering and advisory work for energy, industrial, infrastructure, environmental and resources clients. Activities could begin with strategy, feasibility studies and front-end engineering and continue through detailed design, technical assurance, procurement support and project execution.

• Professional services

  Project management and delivery

  The group managed complex capital projects and provided procurement, construction-management, commissioning and delivery support. Its work covered new facilities as well as modifications and expansions to operating sites, particularly in energy and industrial markets.

• Professional services

  Environmental and infrastructure services

  Environmental activities included scientific assessment, planning, permitting, monitoring and related engineering. Infrastructure capabilities extended to public-sector and transport projects, including roads, rail, hospitals, public buildings and other civil assets.

• Professional services

  Nuclear engineering and safety consulting

  Through AMEC and Foster Wheeler capabilities, the group advised nuclear-sector clients on engineering, safety, asset support and related technical matters. Wood Group later sold or separated certain North American nuclear activities after the acquisition.

• Professional services

  Asset management and operational support

  The company supported existing facilities through maintenance, asset integrity, reliability improvement, operational assistance, brownfield modifications and lifecycle planning. These services helped clients manage aging or complex industrial assets.

• Power engineering

  Power equipment and services

  The Global Power Group operated internationally as a power-equipment and engineering business, complementing the group's consulting and project-delivery activities in power generation and industrial processing.

• 2021

  Serious Fraud Office deferred prosecution agreement

  The UK Serious Fraud Office entered into a deferred prosecution agreement with Amec Foster Wheeler Energy Limited over historical use of corrupt agents in the oil-and-gas sector. The global settlement involved UK, US and Brazilian authorities. The UK component included a financial penalty, costs and compensation connected with Nigeria.

  Source

Read more

• 2007SOS Children's Villages partnership

  Asia · Nigeria

  AMEC began supporting SOS Children's Villages, funding educational projects in Asia and later supporting a green infrastructure project at the children's village in Gwagwalada, Nigeria. The Nigerian project installed solar power and water infrastructure intended to make village houses more self-sufficient.

  Outcome. The Nigerian project installed solar power and water infrastructure intended to make village houses more self-sufficient.

  Source

• 2017

  Accept Wood Group acquisitionM&A

  Background

  The company faced sector-wide weakness, reduced energy spending and debt-related financial pressure after the Foster Wheeler acquisition.

  Action taken

  Amec Foster Wheeler was acquired by John Wood Group plc after the transaction received Competition and Markets Authority approval.

  Aftermath

  Completion on 9 October 2017 ended the company's independent listed existence. Wood Group subsequently reorganized, sold or separated parts of the acquired portfolio and closed some offices.

  Announced transaction value. Approximately £2.2 billion (Announced March 2017; completed October 2017)

  Source

• 2015

  Reorient toward brownfield and non-US workStrategy

  Background

  Oil-price declines reduced spending by important oil-and-gas customers and increased pressure on the combined group's earnings and balance sheet.

  Action taken

  The company emphasized brownfield activities and markets outside the United States, while raising its cost-saving target and reducing the final dividend.

  Aftermath

  The group continued to face financial pressure, and chief executive Samir Brikho left in January 2016.

  Cost-reduction target. $180 million (Target for 2017, announced in 2015)

  Source

• 2014

  Complete the acquisition of Foster WheelerM&A

  Background

  AMEC sought to combine its engineering and project-services platform with Foster Wheeler's international energy and industrial capabilities.

  Action taken

  AMEC completed the acquisition on 13 November 2014 and renamed the combined business Amec Foster Wheeler.

  Aftermath

  The transaction created a larger international engineering group, but also increased exposure to the energy-sector downturn and acquisition-related debt.

  Source

1. 1Amec Foster Wheeleren.wikipedia.org
2. 2SFO agrees deferred prosecution agreement with Amec Foster Wheeler Energy Limitedsfo.gov.uk