WEIR Oil & Gas division up for sale at US$405m

WEIR Oil & Gas division up for sale at US$405m

The Group has announced the proposed sale of Weir Oil & Gas division to Caterpillar Inc for an enterprise value of $40

The Weir Group has its proposed sale of Weir Oil & Gas division to Caterpillar Inc for an enterprise value of US $405m, subject to customary working capital and debt-like adjustments at closing (the “Transaction”).

This follows the announcement in February 2020 that Weir would seek to maximise value from its Oil & Gas division as it continued its strategic transformation into a premium mining technology pure play.

When complete, the sale will deliver on the transformation of Weir into a premium mining technology pure play.

Jon Stanton, Weir Group Chief Executive Officer said:

“We are pleased to have reached this agreement that delivers a great home for the Oil & 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.

It means Weir is ideally positioned to benefit from long-term structural demographic trends and climate change actions which will increase demand for essential metals that must also be produced more sustainably and efficiently.  This will require the innovative engineering and close customer partnerships that define Weir, and it is why we are so excited about the future.”

Joe Creed, Vice President of Caterpillar’s Oil & Gas and Marine division said:

“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.”

As a Class 1 Transaction the sale is conditional upon the approval of Weir shareholders with a Circular to be posted in due course, including a timetable for a General Meeting.  The Weir Oil & Gas division will now be classified as held for sale and will be reported in discontinued operations.

Weir in Africa

Weir has an unrivaled footprint across the African continent with its offices and service centers spread across 23 locations in Africa, servicing the minerals and oil and gas industries. South Africa is home to Weirs manufacturing facilities in Africa as well as head office for Africa.

By: Siphiwe N.

 

Energy International News