Scottish engineering company Weir Group said yesterday it had bought a US rival in a deal worth up to £237million.
Weir said it would pay an initial £148million for Mathena, with the remainder payable over two years if the company hits its profit targets.
Glasgow-based Weir said it acquired Oklahoma-based Mathena, which makes pressure-control products for the growing shale drilling market, to increase its presence in the unconventional oil and gas market.
Weir chief executive Keith Cochrane said: “Mathena is a well-regarded business in the US upstream oil and gas markets, with a strong management team and market share in the pressure control drilling markets. The business has strong growth potential and increases our exposure to shale oil and gas, markets with attractive long-term structural growth prospects.”
Weir said Mathena’s management would remain with the company, adding that the deal was expected to be completed by the year-end.
Weir, which has annual turnover of about £2.3billion, employs about 14,000 people worldwide. In addition to its Glasgow HQ, it also has Scottish bases at Alloa and in Aberdeen.