Caterpillar 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 transaction includes more than 40 global service centers and approximately 2,000 employees.
Transaction highlights
- Agreement to sell Oil & Gas division to Caterpillar for an Enterprise Value of $405 million
- Net proceeds to reduce the Group’s leverage; pro forma Net Debt/EBITDA at June 30 2020 of 1.9x
- Transaction facilitates a $70 million cash tax benefit for Weir to be realized over the medium term
- Transaction subject to Weir shareholder approval; Class 1 Circular to be published in due course
“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.”
Source: Caterpillar, Weir
