The Glasgow-based Industrial pump maker Weir Group (
www.global.weir) has made its first acquisition in almost two years with the $114 million purchase of Singapore-based KOP Surface Products.
Weir, which supplies the oil and gas and mining industries, has been hit hard by the collapse in the price of crude oil and cut almost one in 10 of its staff and shut plants, but it says that the cash purchase of KOP, which supplies oil and gas customers, will allow it to benefit when the oil sector “regains its poise”.
Weir chief executive Jon Stanton (pictured) said: “KOP is a great company that we have admired for some time, and a natural fit for us that extends our equipment range.
“Its position in Asia also complements Weir’s leading presence in North America and the Middle East, so our group is in an even stronger position to benefit as oil and gas markets recover in the future.”
After the sale, which is expected to be completed in the early autumn, KOP’s current executive team will remain in place and will report to Weir.
Highlighting the ‘delicate’ state of the sector, in the previous three years KOP averaged annual revenues of $117 million and earnings of $21 million.
However, its revenues in the current year are expected to be $46 million, with earnings of $2 million. It is expected that Weir will achieve revenues of £2.2 billion this year and a pre-tax profit of £243 million.