File photo
File photo
Caterpillar Inc. has negotiated a $400 million purchase of the Oil & Gas Division of Weir Group PLC, an engineering business that produces pumps, flow iron, consumable parts, wellhead products, and pressure control products.
This buyout would mean that Caterpillar would add 40 Weir Oil & Gas manufacturing and service locations. The purchase would also add 2,000 employees, according to WAND.
“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,” Caterpillar Vice President Joe Creed said. “This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
To Caterpillar, this purchase is in check with the business strategy to "invest for long-term, profitable growth through operational excellence, expanded offerings, and services." A strong balance sheet is being used to finish the acquisition.
“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,” Weir Group CEO Jon Stanton said. “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.”
Caterpillar was established in 1925. In 2019, its revenues and sales were $53.8 billion.
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