Caterpillar Inc. (NYSE:CAT) announced Feb. 2 it 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, 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.
Caterpillar announced in October it had signed an agreement to acquire kthe the business for $405 million to be paid in cash at closing. The transaction includes more than 40 Weir Oil & Gas manufacturing and services locations and approximately 2,000 employees.
“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.”
Weir Oil & Gas is a division of the Weir Group PLC, the Scotland-based global engineering business with operations in more than 50 countries. The division is headquartered in Fort Worth and is a leading provider of pressure pumping, pressure control and aftermarket services to upstream oil and gas customers in North America and internationally. In February 2020, The Weir Group PLC announced its intention to sell the Oil & Gas division to become a mining technology pure play providing highly engineered solutions from extraction through to concentration and tailings management. Weir Oil & Gas generated revenues of $791 million in 2019.
Founded in 1871, The Weir Group PLC has been listed on the London Stock Exchange since 1946.
Morgan Stanley & Co. LLC served as Caterpillar’s exclusive financial advisor for the transaction.