SOUTHSIDE firm Weir Group PLC has shelled out £431 million to snap up US company Seaboard Holdings Inc.
The engineering firm said it made the purchase to increase its presence in the “growing upstream oil and gas markets” in America.
Based in Houston, Texas, Seaboard makes engineered wellhead and pressure control equipment for the gas and oil exploration and production industries.
The company also provides a range of associated field and support services including equipment rental into the onshore oil and gas drilling, completion and production markets.
The expanding movement towards unconventional oil and gas development and the rapid growth of high-pressure hydraulic fracturing has increased demand for Seaboard’s products and services.
Speaking on the acquisition, Weir chief executive Keith Cochrane said: “Seaboard is a well-managed business with a strong position in the market that we understand well.
“The acquisition is perfectly in line with strategy.
“It broadens our product offering and fits into our business model of growing the installed base of original equipment from which we drive aftermarket opportunities.
“There is great potential to strengthen the business further through our lean engineering and operational processes and extensive sales and service networks.
“We are confident that the extended market opportunities and medium term operational benefits will create significant value for our shareholders.
“We retain financial flexibility to pursue organic growth initiatives and further acquisition opportunities in line with our strategy”.