- 4 July 2007 -

Weir to acquire SPM Flow Control

The Weir Group is to acquire SPM Flow Control Inc for US$653 million. SPM, based in Texas, USA, is a manufacturer of high-pressure well service pumps and related flow control equipment for abrasive, high-wear applications in oil and gas drilling and extraction. Higher energy prices have led to increase in oil and gas well development which, when coupled with an increased use of well stimulation techniques to enhance hydrocarbon output, has resulted in a growing demand for SPM’s portfolio of well service products, Weir says.

Weir says that this acquisition will help increase its presence in the higher-growth upstream oil and gas market, particularly in the well stimulation niche, help it create a business model that is increasingly aftermarket-driven, increase sales of both SPM’s and Weir’s existing engineering services and products, improve SPM’s productivity, and produce an expected return of more than Weir’s cost of capital within three years.

“SPM has a great market position in a core sector for Weir and we have good potential to improve the business through our operational expertise, geographic profile and financial strength,“ said Weir’s chief executive, Mark Selway.

www.weir.co.uk

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