American acquisition for Weir

Engineering business The Weir Group has made an American acquisition with the $176 million (£113 million) purchase of Dallas-based Novatech.
 
Novatech manufactures technology for valve and valve seats involved in high pressure applications for the oil and gas industry. The company is being acquired from its previous private family ownership.
 
The consideration is to be funded using existing bank facilities and is said by Weir to be in line with its acquisition criteria and be earnings accretive with post tax returns to exceed Weir's cost of capital within a year.
 
Keith Cochrane, chief executive of Weir, comments: 'Novatech is a respected brand in the US upstream oil and gas markets, with strong 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.'
 
According to a statement Novatech enables Weir to open international markets to Novatech's offering and enhance its productivity.
 
Starr Pitzer, chief executive officer of Novatech, says that the business has worked with Novatech for a number of years.
 
He adds: 'Trough 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.'