UK: Engineer Weir acquires Singapore-based oil business

Weir Group, the maker of heavy-duty equipment for the oil and mining sectors, has unveiled an acquisition aimed at strengthening its position as energy markets recover.

The UK-listed engineering company is buying Singapore-based KOP Surface Products from Norwegian oilfield services investor Akastor for USD 114 million (£89m) in cash. The business makes wellheads, valves and other equipment and employs 450 people.

Weir thrived on the back of the boom in global energy and mining production, but like several other UK-listed engineers, was hit by the slump in commodities prices as cash-strapped customers slashed investments.

The downturn has been most severely felt at its oil and gas division, which is focused on supplying the North American shale extraction industry. Falling revenues have forced Weir into tough cost-cutting measures, laying off more than one-tenth of its workforce and closing plants.

However, the Scotland-based group has recently spoken about the beginning of an upturn in its main markets, after saying it expects sales to increase this year.

Jon Stanton, chief executive of Weir, said the acquisition was “a natural fit for Weir”. KOP’s position in Asia “complements Weir’s leading presence in North America and the Middle East”, he added.

Full Content: Telegraph

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