The Weir Group has announced that it will buy Dallas-based valve-manufacturer Novatech for USD 176 million in cash in an effort to expand the UK company’s offerings to producers of unconventional oil and gas. Weir said it will fund the deal using existing bank facilities.
Weir expects the acquisition to be “immediately earnings accretive with post tax returns expected to exceed Weir’s cost of capital within the first full year of ownership”. The deal, subject to US regulatory approvals, is expected to close in February. Novatech produces a variety of valves and valve seats for high-pressure applications such as frac, cement and mud pumps used in unconventional oil and gas operations.
Weir expects the acquisition to be “immediately earnings accretive with post tax returns expected to exceed Weir’s cost of capital within the first full year of ownership”. The deal, subject to US regulatory approvals, is expected to close in February. Novatech produces a variety of valves and valve seats for high-pressure applications such as frac, cement and mud pumps used in unconventional oil and gas operations.
