First Reserve Signs Agreement to Acquire Weir Flow Control, a Subsidiary of the Weir Group PLC

Source Press Release
Company First Reserve CorporationThe Weir Group PLC 
Tags Corporate Deals, Deals, Power
Date February 25, 2019

£275 million acquisition of a provider of engineered valves and pumps in the global energy and industrial sectors

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.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd