Recently, Caterpillar signed an agreement to acquire the oil and gas division of the Weir Group (hereinafter referred to as "Weir Oil and Gas").
Joined forces,
Strive to create more value for customers
The Weir Group is a global engineering company headquartered in Scotland with operations in more than 50 countries. Weir Oil & Gas is headquartered near Fort Worth, Texas, and its products include pressure pumping, high pressure manifolds, wearing parts, wellheads and pressure control products. It has an extensive service network around the world to provide customers with services and support.
Joe Creed, Vice President of Caterpillar's Oil, Gas and Marine Division said:
The strong combination of Weir Oil & Gas's mature pressure pumping and pressure control products and CAT? (Carter) engine and gearbox products will help us create more value for our customers. Through this acquisition, we will provide a broader product line for the oilfield workover industry.
The acquisition requires the approval of Weir Group shareholders, acceptance of review by various regulatory agencies and meeting customary closing conditions. The purchase price is US$405 million and will be paid in cash at the end of the transaction. The transaction includes more than 40 Weir Oil and Gas manufacturing and service locations, involving approximately 2,000 employees.
Meet Caterpillar
An acquisition of corporate strategy
Jon Stanton, CEO of Weir Group said:
We are very happy to reach this agreement. Caterpillar is the ideal new home for Weir Oil & Gas, with outstanding employees, products and services. This acquisition will enable Weir Oil & Gas to continue its prosperity and development, and remain at the forefront of innovation and customer service in the future.
This acquisition is in line with Caterpillar’s corporate strategy of achieving long-term and profitable growth through operational excellence, expanded product lines and services, and it also reflects Caterpillar’s sound financial status.
Morgan Stanley is Caterpillar's exclusive financial advisor for this acquisition.
