Caterpillar Inc. CAT has entered into an agreement with Weir Group PLC to acquire its Oil & Gas business for a cash price of $405 million. The buyout will expand Caterpillar’s offerings in the oil & gas market. Notably, the acquisition includes more than 40 Weir Oil & Gas manufacturing and services locations, and nearly 2,000 employees.
Based in Scotland, Weir Group is a global engineering company. Its Oil & Gas Division produces pumps, consumable parts, flow iron, wellhead and pressure control products. It provides pressure pumping, pressure control and after-market services to upstream oil and gas customers in North America and worldwide. This February, Weir Group announced its intention to divest the Oil & Gas division in line with its focus to become a mining technology pure play. Together, Weir Oil & Gas’ pressure pumping and pressure control portfolio and Caterpillar’s engines and transmissions will enable the latter to