As per reports, Caterpillar, Inc. (CAT) has entered a deal with Weir Group PLC, to acquire its Oil & Gas Division, “Weir Oil & Gas” for a purchase price of $405 million to be paid in cash.
Weir Group PLC is a Scotland-based global engineering business, headquartered in near Fort Worth, Texas. Its oil and gas division produces a full line of pumps, consumable parts, flow iron, wellhead, and pressure control products served by an extensive global network of service centers placed near customer operations. The deal includes more than 40 Weir Oil & Gas manufacturing and services locations and 2,000 employees approximately.
“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. This acquisition will expand our offerings to one of the broadest product lines in the well service industry.” stated Joe Creed, Vice President of Caterpillar’s Oil & Gas and Marine Division.
“We are pleased to have reached this agreement. Caterpillar is a great new home for Weir Oil & Gas, its world-class people, products, and services. It will enable Weir Oil & Gas to continue to flourish, ensuring the business remains at the forefront of innovation and customer service in the future.” stated Jon Stanton, Weir Group CEO.
Morgan Stanley & Co. LLC is serving as Caterpillar’s financial advisor for the transaction. The deal awaits approval by Weir shareholders and is subject to review by other regulatory authorities as well as customary closing conditions.
Dow 30 Component Caterpillar, Inc. (CAT) is the world’s chief manufacturer of diesel and natural gas engines, construction and mining equipment, industrial gas turbines, and diesel-electric locomotives. Caterpillar, Inc. also works to make sustainable progress possible and contributes to driving positive change on every continent. To learn more about Caterpillar, Inc. (CAT) and to continue to track its progress please visit the Vista Partners Caterpillar, Inc. Coverage Page.
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