SCOTTISH firm Weir Group has agreed to sell its oil and gas division to Caterpillar for £314 million.
Weir, which has offices in Aberdeen, initially announced its plans to divest in February, saying it wanted to focus on becoming a “premium mining technology firm”.
Subscribe to our daily newsletter
Why? Free to subscribe, no paywall, daily business news digest.
The Glasgow-headquartered company said the agreement with Caterpillar would be a “strong outcome for all stakeholders”.
Subject to shareholder approval, the deal should go through by the end of 2020.
Jon Stanton, Weir chief executive, said: “We are pleased to have reached this agreement that delivers a great home for the oil and gas division and maximises value for our stakeholders.
“Alongside the previous sale of the Flow Control division and the acquisition of ESCO, it is a major milestone in transforming the group into a focused, premium mining technology business.
“It means Weir is ideally positioned to benefit from long-term structural demographic trends and climate change actions which will increase demand for essential metals that must also be produced more sustainably and efficiently.
“This will require the innovative engineering and close customer partnerships that define Weir, and it is why we are so excited about the future.”
Joe Creed, vice president of Caterpillar’s oil and 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.”
