$405M Price Tag: Deerfield-Based Caterpillar Buys Weir Oil & Gas

Deerfield IL

06 October, 2020

12:43 PM

Description

DEERFIELD, IL — It appears Caterpillar Inc., the Deerfield-based construction equipment manufacturer, is on the verge of acquiring Weir Oil & Gas at a price tag of $405 million. The purchase of the Fort Worth, Texas company was announced in a Monday press release from Caterpillar. Caterpillar is headquartered at 510 Lake Cook Road in Deerfield. 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, according to the release. "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, in the release. "This acquisition will expand our offerings to one of the broadest product lines in the well service industry." Earlier this year, Associated Press reported profits are down more than 45 percent and revenue has fallen by nearly $4 billion for Caterpillar Inc. The purchase price of $405 million for Weir Oil & Gas 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, in the release. "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, according to the release, "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. Related: Caterpillar Clothing Made At Illegal Chinese Labor Camp: ReportCaterpillar Profits Tumble With Economy On Coronavirus Lockdown