Caterpillar has signed off on a deal to buy the US-based oil and gas division of the Weir Group, Weir Oil & Gas, for USD 405.00 million in cash.
The transaction includes more than 40 of the target’s manufacturing and services locations, as well as around 2,000 of the group’s employees.
Completion remains subject to regulatory approvals and customary closing conditions.
Headquartered near Texas, Weir Oil & Gas produces a full line of pumps, consumable parts and pressure control devices, among others.
The group also supports well drilling and completion and production and downstream projects worldwide.
Its offerings are serviced through a global network of facilities situated close to client locations.
Joe Creed, vice president of Caterpillar’s oil, gas and marine division, said: “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.”
Furthermore, the deal is also in line with Caterpillar’s strategy of investing in long-term and profitable growth through operational excellence, expanded offerings and services.
Established in 1925, the purchaser claims to be the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines, among others.
For the six months ended 30th June 2020, Caterpillar posted revenue of USD 1.34 billion, down 10.1 per cent from USD 1.34 billion in the corresponding period of 2019.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 98 deals targeting companies that provide support for oil and gas operations announced worldwide since the beginning of 2020.
In the most valuable of these, Chevron agreed to buy US-based Noble Energy for USD 13.00 billion, which placed among the ten-largest transactions on record for this sector.
© Zephus Ltd