DEERFIELD, Ill., Oct. 5, 2020
/PRNewswire/ -- Caterpillar Inc. (NYSE: CAT)
has signed an agreement to acquire the Oil & Gas Division
("Weir Oil & Gas") of the Weir Group PLC, a Scotland-based global engineering business.
Headquartered near Fort Worth, Texas, Weir Oil & Gas produces a full line
of pumps, flow iron, consumable parts, wellhead and pressure
control products that are serviced via an extensive global network
of service centers located near customer
operations.
"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."
The purchase price of $405 million
is to be paid in cash at closing. The acquisition requires approval
by Weir shareholders and is subject to review by various regulatory
authorities as well as customary closing conditions. The
transaction includes more than 40 Weir Oil & Gas
manufacturing and services locations and approximately 2,000
employees.
"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."
This acquisition is consistent with Caterpillar's strategy to
invest for long-term, profitable growth through operational
excellence, expanded offerings and services. Caterpillar is taking
advantage of its strong balance sheet to complete this acquisition
that supports the enterprise strategy.
Morgan Stanley & Co. LLC is serving as Caterpillar's
exclusive financial advisor for the transaction.
About Weir Oil & Gas
Weir Oil & Gas is a
division of the Weir Group PLC, the Scotland-based global engineering business
with operations in more than 50 countries. The division is
headquartered in Fort Worth,
Texas, and is a leading provider of pressure pumping,
pressure control and aftermarket services to upstream oil and gas
customers in North America and
internationally. In February
2020, The Weir Group PLC announced its intention to sell the
Oil & Gas division to become a mining technology pure play
providing highly engineered solutions from extraction through to
concentration and tailings management. Founded in 1871, The
Weir Group PLC has been listed on the London Stock Exchange since
1946. Find out more at www.global.weir.
About Caterpillar
Since 1925, Caterpillar Inc. has been helping our customers build a
better world – making sustainable progress possible and driving
positive change on every continent. With 2019 sales and revenues of
$53.8 billion, Caterpillar is the
world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines, industrial gas turbines and
diesel-electric locomotives. Services offered throughout the
product life cycle, cutting-edge technology and decades of product
expertise set Caterpillar apart, providing exceptional value to
help our customers succeed. The company principally operates
through three primary segments – Construction Industries, Resource
Industries and Energy & Transportation – and provides financing
and related services through its Financial Products segment. For
more information, visit caterpillar.com. To connect on social
media, visit caterpillar.com/social-media.
Forward-looking Statements
Certain statements in this presentation relate to future events and
expectations and are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Words such
as "believe," "estimate," "will be," "will," "would," "expect,"
"anticipate," "plan," "forecast," "target," "guide," "project,"
"intend," "could," "should" or other similar words or expressions
often identify forward-looking statements. All statements other
than statements of historical fact are forward-looking statements,
including, without limitation, statements regarding our outlook,
projections, forecasts or trend descriptions. These statements do
not guarantee future performance and speak only as of the date they
are made, and we do not undertake to update our forward-looking
statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) commodity price changes, material price
increases, fluctuations in demand for our products or significant
shortages of material; (iii) government monetary or fiscal
policies; (iv) political and economic risks, commercial instability
and events beyond our control in the countries in which we operate;
(v) international trade policies and their impact on demand for our
products and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability
to develop, produce and market quality products that meet our
customers' needs; (vii) the impact of the highly competitive
environment in which we operate on our sales and pricing; (viii)
information technology security threats and computer crime; (ix)
inventory management decisions and sourcing practices of our
dealers and our OEM customers; (x) a failure to realize, or a delay
in realizing, all of the anticipated benefits of our acquisitions,
joint ventures or divestitures; (xi) union disputes or other
employee relations issues; (xii) adverse effects of unexpected
events; (xiii) disruptions or volatility in global financial
markets limiting our sources of liquidity or the liquidity of our
customers, dealers and suppliers; (xiv) failure to maintain our
credit ratings and potential resulting increases to our cost of
borrowing and adverse effects on our cost of funds, liquidity,
competitive position and access to capital markets; (xv) our
Financial Products segment's risks associated with the financial
services industry; (xvi) changes in interest rates or market
liquidity conditions; (xvii) an increase in delinquencies,
repossessions or net losses of Cat Financial's customers;
(xviii) currency fluctuations; (xix) our or
Cat Financial's compliance with financial and other
restrictive covenants in debt agreements; (xx) increased pension
plan funding obligations; (xxi) alleged or actual violations of
trade or anti-corruption laws and regulations; (xxii) additional
tax expense or exposure, including the impact of U.S. tax reform;
(xxiii) significant legal proceedings, claims, lawsuits or
government investigations; (xxiv) new regulations or changes in
financial services regulations; (xxv) compliance with environmental
laws and regulations; (xxvi) the duration and geographic spread of,
business disruptions caused by, and the overall global economic
impact of, the COVID-19 pandemic; and (xxvii) other factors
described in more detail in Caterpillar's Forms 10-Q, 10-K and
other filings with the Securities and Exchange
Commission.
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SOURCE Caterpillar Inc.