Weir finalizes sale of Oil & Gas division to Caterpillar
The Weir Group plc has completed the sale of its Oil & Gas division to Caterpillar Inc for an enterprise value of US$405 million.
Weir’s joint venture partner in Saudi Arabia-based Arabian Metals Co (AMCO) is buying the UK company’s 49% stake in AMCO. As a result, the cash proceeds from the sale of the Oil & Gas division, subject to customary working capital and debt-like adjustments, will be US$375 million from Caterpillar Inc and US$30 million on completion of the sale of AMCO, which is expected in the first half of this year.
“I would like to thank the Oil & Gas team for their magnificent contribution to Weir over the years,” said Jon Stanton, CEO of the Weir Group. “The sale delivers a great new home for the business and its people, and enables Weir to fully focus on our role as a provider of premium technology to global mining and infrastructure markets.”
