Caterpillar Inc., Deerfield, Ill., said it has signed an agreement to acquire the Oil & Gas Division of the Weir Group PLC, a Scotland-based global engineering business. Headquartered near Fort Worth, Texas, Weir Oil & Gas produces pumps, flow iron, consumable parts, wellhead and pressure control products that are serviced via a global network of service centers.
In February 2020, The Weir Group PLC announced its intention to sell the Oil & Gas division to become a mining technology pure play providing engineered solutions from extraction through to concentration and tailings management. Founded in 1871, The Weir Group PLC has been listed on the London Stock Exchange since 1946.
“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,” said Joe Creed, vice president of Caterpillar’s Oil & Gas and Marine Division. “This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
The purchase price of $405 million is to be paid in cash at closing. The acquisition requires approval by Weir shareholders and is subject to review by various regulatory authorities as well as customary closing conditions. The transaction includes more than 40 Weir Oil & Gas manufacturing and services locations and approximately 2000 employees.
As to how this acquisition, when closed, will impact its Black Horse LLC pump joint venture, Caterpillar only said it would release no further information until after the final closing of the Weir acquisition. In 2012, Caterpillar and Ariel Corp. announced Black Horse, a 50-50 joint venture to provide well service pressure pumping products for the oil and gas industry. At the time the JV was announced, Black Horse also announced the acquisition of reciprocating pressure pump manufacturer ProSource of Houston, Texas.