DEERFIELD, Ill. (WAND) - Caterpillar has announced a purchase agreement to acquire Weir Oil & Gas for over $400 million.
With approval pending from regulators and Weir shareholders, the agreement would allow Caterpillar Inc. to gain the Oil & Gas Division of Weir Group PLC, a global engineering business based in Scotland. Weir Oil & Gas has a United States headquarters near Fort Worth, Texas, and produces a full line of pumps, flow iron, consumable parts, wellhead and pressure control products, a Caterpillar press release said.
Caterpillar would gain over 40 Weir Oil & Gas manufacturing and services locations, along with about 2,000 employees, in the purchase. A company official expressed his excitement for the deal.
“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,” said Joe Creed, vice president of Caterpillar’s Oil & Gas and Marine Division. “This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
“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,” said Jon Stanton, Weir Group CEO. “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 said this purchase is in line with its strategy to "invest for long-term, profitable growth through operational excellence, expanded offerings and services." The press release said the company is using a strong balance sheet to complete the acquisition.
Caterpillar has operations in central Illinois, including manufacturing operations in Decatur.
