Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Weir to Buy Seaboard for $675 Million to Expand in U.S.

Nov. 23 (Bloomberg) -- Weir Group Plc, the Scottish maker of pumps and equipment for mining companies, agreed to acquire Seaboard Holdings Inc for $675 million to expand in North America.

Weir will fund the acquisition through new and existing bank facilities, the Glasgow-based company said in an e-mailed statement today. Houston, Texas-based Seaboard provides equipment for the oil-and-gas drilling market, such as high pressure hydraulic fracturing, as well as associated field and support services.

“We are confident that the extended market opportunities and medium-term operational benefits will create significant value,” Chief Executive Officer Keith Cochrane said in the statement. The company retains the “financial flexibility to pursue organic growth initiatives and further acquisition opportunities,” he added.

Cochrane is extending Weir’s reach into upstream equipment, including pressure control gear for wellheads, as energy companies seek to increase drilling activity at more complex sites.

The purchase of Seaboard will be accretive to earnings immediately, and post-tax returns will exceed Weir’s cost of capital by 2014. Weir is paying about 11.64 times earnings. The U.S. company is forecast to have earnings before interest, tax, depreciation and amortization of $58 million on sales of $216 million.

Weir was advised by Bank of America Merrill Lynch. Simmons & Co. advised Seaboard.

To contact the reporter on this story: Sabine Pirone in London at spirone@bloomberg.net

To contact the editor responsible for this story: Andrew Noel at anoel@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.