Weir Group ups US shale gas position with $675m buy
24 Nov 2011
London – Weir Group PLC is to acquire Seaboard Holdings Inc, a Houston, Texas,-based supplier of wellhead equipment to the growing North American unconventional oil and gas drilling and production markets for $675 million. The US manufacturer’s surface equipment, said Weir, complements its own range of ’frac’ pumps and other well completion equipment.
Seaboard makes engineered wellhead and pressure control equipment for the oil and natural gas exploration and production industries. It 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 growing shift in North America towards unconventional oil and gas development and the rapid growth of high pressure hydraulic fracturing has increased demand for Seaboard’s products and services, said Weir. For the year to 31 Dec, Seaboard is forecast to achieve sales and earnings (EBITDA) of $216 million and $58 million, respectively.
Weir expects the global market for wellhead and pressure control products to grow on higher drilling activity and increasing well complexity, leading to growing demand. It also expects significant synergies between Seaboard and its existing North American operations, SPM and Mesa.
Following completion of the acquisition, the existing senior management team led by Kelly Joy, CEO, will continue to manage the business and will report to Steve Noon, divisional MD of Weir Oil and Gas.
