Dallas, Texas 06/30/2015 (Financialstrend) – Willbros Group Inc (NYSE:WG) has completed the sale of its professional service segment. The sale is made of a Louisiana-based downstream engineering services and Oklahoma-based heater engineering services. The sale was made to a group of partners led by Bernhard Capital Partners.
Financial Flexibility Concerns
CEO, John T. McNabb, expects the transaction to strengthen the company’s balance sheet that has come under immense pressure in the recent past. The transaction should also reduce the amount of risk the company is exposed to, while enhancing the ability to win new work.
Willbros Group Inc (NYSE:WG) revenue opportunities going forward should be driven by construction services. The transactions should also enhance the company’s financial position through alliances, strategic partnerships, and joint venture.
Ed Wiegele the executive vice president of the Professional services expects the transaction to serve employees and customers well, while allowing for a further growth of the services on offer as well as the customer base.
Sale Of Other Assets
The sale comes as the company continues to face financial struggles and in urgent need of immediate cash to meet its financial obligations. Willbros is currently looking for potential buyers for the remaining professional business segment made of midstream ad mainline engineering operations. Willbros Group Inc (NYSE:WG) has not set a definitive timetable when it is to complete the sell-offs.
The ongoing divestitures are expected to allow the company to focus on its other businesses that revolve around construction maintenance and engineering. Willbros announced an overhaul of its business strategy last fall after undergoing a major management overhaul.
Credit default fears have forced Willbros Group Inc (NYSE:WG) to sell most of its subsidiaries as it looks to become lean and efficient in its operations. The sell-offs should allow the company to focus on the construction of energy infrastructure in North America. The change in strategy should also result in improvements in operating results as well as shareholder value.