Glasgow-headquartered Weir Group has wrapped up the sale of its oil and gas division to US construction machinery and equipment giant Caterpillar.
The division is headquartered in Fort Worth, Texas, and employs about 2,000 people, 50 of whom are based at a service facility in Portlethen, near Aberdeen.
The sale, for an enterprise value of $405m, was first announced in October 2020 and approved by shareholders the following month.
Since then, the Weir’s joint venture partner in Saudi Arabia-based Arabian Metals Company (AMCO) has exercised its pre-emption right to purchase the group’s 49% stake in AMCO.
Therefore, the cash proceeds from the sale of the division, subject to customary working capital and debt-like adjustments, will be split between $375m received from Caterpillar Inc. and $30m to be received on completion of the sale of AMCO, which is expected to occur in the first half of this year.
Weir CEO Jon Stanton said: “I would like to thank the Oil & Gas team for their magnificent contribution to Weir over the years. 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.”
Weir Group will announce its 2020 full year results on March 2.