UK Weir Sells Oil & Gas Division
UK engineering firm Weir Group has agreed to the all-cash sale of its entire oil and gas division to Caterpillar for $405mn it said October 5. The final sum will depend on "working capital and debt-like adjustments at closing." The deal is part of Weir's transition to a mining technology company, announced in February.
Caterpillar said that combining "Weir Oil & Gas’s established pressure pumping and pressure control portfolio with Cat’s engines and transmissions enables us to create additional value for customers. This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
Weir said the move is part of "global demographic trends, the transition to a low carbon society and adoption of new technologies in the mining industry," it said. It plans to "build on leading mission-critical positions in the mining supply chain from extraction to concentration and tailings management." Completion is expected by the end of 2020, assuming normal regulatory clearances.
CEO Jon Stanton said the deal "delivers a great home for the oil and gas division and maximises value for our stakeholders. Alongside the previous sale of the Flow Control division and the acquisition of Esco, it is a major milestone in transforming the Group into a focused, premium mining technology business."