Engineering solutions group Weir is to buy pressure control rental equipment firm Mathena as it attempts to up its exposure to the fast-growing shale oil and gas market.
Mathena, which makes a range of pressure control products including hydraulic chokes, mud-gas and shale-gas separators for the for onshore oil and gas markets, will be acquired for an initial payment of $240m (£148m) with a maximum deferred consideration of $145m payable over two years, subject to profit targets.
In a statement on Thursday morning, Weir said: "In addition to its manufacturing expertise, Mathena differentiates itself through a strong customer service culture, product innovation and the ability to offer complete bespoke rental and service packages.The acquisition will increase the aftermarket focus of Weir Oil & Gas with approximately 80% of Mathena's revenues generated from equipment rental and 20% from related parts and service."
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The group said that this acquisition is a "strong strategic fit" with Weir Seaboard in the pressure control market and supports the expansion of its flow back services.
"Mathenais a well-regarded business in the US upstream oil and gas markets, with a strong management team and market share in the pressure control drilling markets," said Weir's Chief Executive Officer Keith Cochrane.
"This deal is a close strategic fit with our existing pressure control business and gives us a larger suite of products which we can sell to the expanded customer base. The business has strong growth potential and increases our exposure to shale oil and gas, markets with attractive long term structural growth prospects."
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