Caterpillar Inc. has completed its acquisition of the Oil & Gas Division (“Weir Oil & Gas”) of the Weir Group PLC, a Scotland-based global engineering business.
Headquartered near Fort Worth, Texas, SPM Oil & Gas will continue to produce a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are offered via an extensive global network of service centers.
“Combining Weir Oil & Gas’ pressure pumping and pressure control portfolio with Cat engines and transmissions will provide additional value for our customers,” said Joe Creed, Caterpillar Group President. “This acquisition is consistent with our strategy of providing our customers expanded offerings and services which will now be one of the broadest in the well service industry.”
“The creation of SPM Oil & Gas ensures the hard work accomplished by Weir Oil & Gas remains at the forefront of innovation and customer service,” said Jon Stanton, Weir Group CEO. “The new organization’s products and services along with its global reach provide an excellent customer experience and opportunity for growth.”
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Weir Group PLC announced that it has completed the sale of its Oil & Gas division to Caterpillar Inc., the sale for an enterprise value of US $405m, subject to customary working capital and debt-like adjustments.
The Group’s joint venture partner in Saudi Arabia-based Arabian Metals Company (AMCO) has exercised its pre-emption right to purchase Weir’s 49% stake in AMCO. The cash proceeds from the sale of the division, subject to customary working capital and debt-like adjustments, will be split between US $375m received from Caterpillar Inc. and US $30m to be received on completion of the sale of AMCO, which is expected to occur in the first half of this year.
Commenting, the Weir Group CEO Jon Stanton said:
“I would like to thank the Oil & Gas team for their magnificent contribution to Weir over the years. The sale delivers a great new home for the business and its people, and enables Weir to fully focus on our role as a provider of premium technology to global mining and infrastructure markets.”
