Caterpillar Inc. 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, the Weir Group PLC, founded in 1871, 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.
“Combining Weir Oil & Gas’ 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 transaction, US$405 million, includes more than 40 Weir Oil & Gas manufacturing and services locations and 2000 employees. As to how this acquisition will impact its Black Horse LLC pump joint venture, Caterpillar said it would release no further information until after the Weir acquisition closes. 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 that time, Black Horse also announced the acquisition of reciprocating pressure pump manufacturer ProSource of Houston, Texas.