Caterpillar has signed an agreement to acquire Weir Oil & Gas for $405 million from the Weir Group, a Scotland-based global engineering business.
Headquartered in Texas, Weir Oil & Gas produces a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are serviced via a global network of service centres located near customer operations.
“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,” said Joe Creed, vice president of Caterpillar’s Oil & Gas and Marine Division. “This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
The $405 million purchase price will be paid in cash at closing. The acquisition requires approval by Weir shareholders and is subject to review by several regulatory authorities as well as customary closing conditions. The transaction includes more than 40 Weir Oil & Gas manufacturing and services locations, which are home to about 2,000 employees.
“We are pleased to have reached this agreement. Caterpillar is a great new home for Weir Oil & Gas, its world-class people, products and services,” said Jon Stanton, Weir Group CEO. “It will enable Weir Oil & Gas to continue to flourish, ensuring the business remains at the forefront of innovation and customer service in the future.”
This acquisition is part of Caterpillar’s strategy to invest for long-term, profitable growth through operational excellence, expanded offerings and services.
In February 2020, The Weir Group PLC announced its intention to sell its Oil & Gas division to become a mining technology pure play providing engineered solutions from extraction through to concentration and tailings management. Founded in 1871, The Weir Group PLC has been listed on the London Stock Exchange since 1946. The company has operations in more than 50 countries.
Morgan Stanley & Co. LLC is serving as Caterpillar’s financial advisor for the transaction.