Weir Group has completed the previously announced sale of its oil and gas business to Caterpillar.
The sale, for an enterprise value of $405m, subject to customary working capital and debt-like adjustments, was first announced on October 5, 2020, and approved by Weir Shareholders on November 23, 2020.
Since then, Weir said Tuesday, the Group's joint venture partner in Saudi Arabia-based Arabian Metals Company (AMCO) has exercised its pre-emption right, to purchase Weir's 49% stake in AMCO.
Because of this, the cash proceeds from the sale of the division, 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.
Commenting, the Weir Group 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 Oil & Gas has been reported under discontinued operations since the sale agreement was announced.