FIRST RESERVE SIGNS AGREEMENT TO ACQUIRE WEIR FLOW CONTROL, A SUBSIDIARY OF THE WEIR GROUP PLC
£275 million acquisition of a provider of engineered valves and pumps in the global energy and industrial sectors
STAMFORD, CT; HOUSTON, TX; LONDON, U.K.; GLASGOW, U.K. – February 25, 2019 – First Reserve, a leading global private equity investment firm exclusively focused on energy, today announced an agreement to purchase Weir Flow Control (“WFC”), a designer, manufacturer and aftermarket services provider of engineered valves and pumps used in energy and broader industrial applications, from The Weir Group PLC (“Weir”). The transaction is expected to close in the second quarter of 2019, subject to certain antitrust approvals and other customary closing conditions.
WFC consists of global brands in niche applications supporting safe, reliable and efficient energy and industrial processes worldwide. These brands include the manufacturing of pressure relief, control and engineered isolation valves and centrifugal pumps for applications in the downstream, midstream, utility and industrial sectors as well as related aftermarket parts and services. The company has a significant installed base spanning a diverse global footprint which continues to be driven by the replacement of ageing facilities throughout the energy and industrial sectors.
Jeff Quake and Neil Hartley, Managing Directors of First Reserve, commented, “First Reserve has deep historical experience creating value for our investors in the flow control space, and we are pleased to partner with Weir in this carve-out transaction. In our view, Weir Flow Control represents an attractive growth platform in a fragmented sector, with internationally recognized brands driven by recurring high-margin aftermarket parts and services which have proven to be resilient through multiple economic environments. We look forward to supporting David Paradis and his talented management team to promote both organic growth and acquisitive expansion of the platform as we seek to drive value on behalf of our investors.”
Jon Stanton, Weir CEO, added, “We are pleased to announce the sale of Flow Control to First Reserve. This is a high-quality business with great people, and I’d like to thank the team for their longstanding contribution to the Group and dedication throughout the sale process. The decision to sell Flow Control is part of Weir’s recent portfolio transformation which focuses the Group on where we can maximise long-term value, building on our strong global leadership positions in mining and upstream oil and gas markets.”
David Paradis, CEO of WFC, added, “Weir Flow Control provides high-quality products and services, critical to the safe operations of our clients in the downstream, midstream, utility, and industrial end markets. As an organisation, we enjoy strong long-term relationships with our customers and pride ourselves on innovation that places the customer first. We thank Weir Group for their support over the years and are excited to partner with First Reserve in this next chapter for our company. We look forward to benefiting from First Reserve’s experience in the flow control sector as we seek to grow our global business.”
About First Reserve
First Reserve is a leading global private equity investment firm exclusively focused on energy. With 35 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. First Reserve has completed over 650 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm’s history. Its portfolio companies have operated on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services, and associated infrastructure. Please visit www.firstreserve.com for further information.
About The Weir Group PLC
Weir is one of the world’s leading engineering businesses working in partnership with customers to solve their toughest operating challenges safely, efficiently and sustainably. Its market-leading solutions are used in high abrasion mining, infrastructure and upstream oil and gas applications, supporting the essential resources needed by a growing world. Weir’s ordinary shares trade on the London Stock Exchange (ticker: WEIR LN) and its American Depositary Receipts trade over-the-counter in the USA (ticker: WEGRY).
For more information on Weir Flow Control, click here: https://www.global.weir/about-us/our-markets/flow-control/.
For First Reserve media inquiries, please contact:
Jonathan Keehner / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher
For The Weir Group PLC media inquiries, please contact:
Investors: Stephen Christie +44 779 511 0456
Media: Raymond Buchanan +44 771 326 1447
Brunswick: Carole Cable / Charles Pretzlik +44 20 7396 5395