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ENERGY: Scotland’s Wood Group to make $131m investment in Canadian oil sands
        (AlbertaIndex, November 20, Tuesday) --- A subsidiary of Scotland’s John Wood Group PLC has agreed to pay an initial $131 million in cash to acquire Calgary-based IMV Corporation (IMV). The acquisition is expected to be completed by the end of November.
        Wood Group said there will be three further cash payments through to 2014 based on IMV’s performance as a provider of engineering, procurement and construction management (EPCM) services to the Canadian oil and gas exploration and production sector.

IMV, with a workforce of around 650, is a market leader in EPCM services for in-situ oil sands developments. Its management team led by founder and President Ivan Velev is expected to stay on after the takeover.

For its latest financial year to August 2007, IMV had profits before tax of $21.6 million.

Wood Group said the acquisition represents a key strategic move into the Canadian heavy oil market.

“This is a significant strategic step in developing a strong position in EPCM services for the Canadian heavy oil market,” said Mike Straughen, Group Director and CEO of Wood Group’s Engineering activities.

“IMV’s strong management team and proven track record of leading expertise for in-situ steam-assisted heavy oil developments are an excellent complement to Wood Group’s existing engineering businesses.

“IMV will continue to operate as a stand-alone business, satisfying the needs of its existing customers and building on its leading position for in-situ heavy oil projects.

“In addition, IMV will work closely with other Wood Group engineering companies, including Mustang and J P Kenny, to help grow the group’s engineering activity in the heavy oil, Arctic, upgrading/downstream and trunkline sectors.”

Ivan Velev, IMV President, said: “We are pleased to have this opportunity to join Wood Group, a company that shares our cultures and values. IMV has achieved strong growth over recent years, and we anticipate that the healthy heavy oil market, momentum in our business and the support of Wood Group will allow our growth to continue.”

Aberdeen-based Wood Group is an international energy services company with more than US$4 billion sales, employing 22,000 people worldwide and operating in 46 countries.

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