Weir Group To Enhance Well-Service Pump Business With Novatech Purchase

To acquire company manufacturing well-service pump valves &valve seats for the upstream industry.

Glasgow, U.K.-based The Weir Group Plc plans to acquire Dallas-based Novatech LLC for US$176 million (£113 million) in cash.

Novatech manufactures well-service pump valves and valve seats for upstream oil and gas applications. The company produces a variety of proprietary valves and valve seats for high-pressure applications such as frac, cement and mud pumps used in unconventional upstream oil and gas operations.

The deal will expand Weir's offerings in the frac pump consumables markets and significantly enhances its frac pump aftermarket portfolio.

Weir chief executive Keith Cochrane says, “Novatech is a respected brand in the U.S. upstream oil and gas markets, with strong market share in the frac consumables market. This deal enables Weir to broaden our aftermarket expendable product portfolio in this fast-growing sector, where increasing operating intensities require equipment and components to be more regularly replaced and serviced. With the recent acquisition of Seaboard, this strengthens further Weir's presence in the North American unconventional oil and gas markets and builds a larger upstream product range to offer the developing international shale markets.”

Novatech president, chairman and CEO Starr L. Pitzer Jr., says, “We have worked with Weir's upstream business as a supplier for a number of years and have come to know the company well and admire the way they operate. Through joining the Group, I believe that Weir's global sales and service networks will enable the business to grow, not only in North America, but also by taking Novatech products to international customers.”

The deal will be funded from Weir’s existing bank facilities.

The acquisition is expected to close in February.