Caterpillar Acquires Weir Oil & Gas, Launches SPM Oil & Gas

Rhea-AI Summary

Caterpillar Inc. has completed its acquisition of Weir Oil & Gas from Weir Group PLC for an undisclosed amount. The integration will create SPM Oil & Gas, which will produce pumps, flow iron, and pressure control products through over 40 global service centers with around 2,000 employees. This acquisition is intended to enhance customer offerings and support Caterpillar's strategy of expanding its services in the well service industry, leveraging Weir's expertise in pressure pumping and control.

Positive

• Enhanced service offerings with integration of Weir Oil & Gas' products.
• Expansion into new markets through over 40 service centers and 2,000 employees.
• Increased competitive edge in the well service industry.

Negative

• Integration challenges may arise from merging operations and cultures.

DEERFIELD, Ill., Feb. 2, 2021 /PRNewswire/ -- Caterpillar Inc. (NYSE:CAT) has completed its acquisition of the Oil & Gas Division ("Weir Oil & Gas") of the Weir Group PLC, a Scotland-based global engineering business. Headquartered near Fort Worth, Texas, SPM Oil & Gas will continue to produce a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are offered via an extensive global network of service centers.

"Combining Weir Oil & Gas' pressure pumping and pressure control portfolio with Cat engines and transmissions will provide additional value for our customers," said Joe Creed, Caterpillar Group President. "This acquisition is consistent with our strategy of providing our customers expanded offerings and services which will now be one of the broadest in the well service industry."

The transaction includes more than 40 global service centers and approximately 2,000 employees.

"The creation of SPM Oil & Gas ensures the hard work accomplished by Weir Oil & Gas remains at the forefront of innovation and customer service," said Jon Stanton, Weir Group CEO.  "The new organization's products and services along with its global reach provide an excellent customer experience and opportunity for growth."

About Caterpillar

With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we've been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

 

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SOURCE Caterpillar Inc.

FAQ

What is the significance of Caterpillar's acquisition of Weir Oil & Gas?

The acquisition aims to enhance Caterpillar's service offerings and expand its market presence in the well service industry.

When did Caterpillar acquire Weir Oil & Gas?

Caterpillar completed the acquisition on February 2, 2021.

What products will SPM Oil & Gas offer after the acquisition?

SPM Oil & Gas will produce pumps, flow iron, consumable parts, and pressure control products.

How many employees does SPM Oil & Gas have?

SPM Oil & Gas will operate with approximately 2,000 employees.

What strategic advantages does Caterpillar gain from this acquisition?

The acquisition allows Caterpillar to provide a broader range of services and products, enhancing customer value.