Weir Group to acquire Singapore firm for £89m
Scottish engineering firm Weir Group has announced it is buying a leading Singapore-based oil and gas technology provider for $114m (£89m) in cash.
Weir said acquiring KOP Surface Products would extend its range of pressure control technologies.
KOP specialises in oil and gas-related equipment, including wellheads, valves and actuators.
It has an Indonesia-based manufacturing plant and sales and service offices in Asia Pacific and the Middle East.
Glasgow-based Weir is buying KOP from Akastor ASA, a Norwegian-listed investor in oilfield services.
KOP's current management team will continue to lead the business, reporting to Weir's oil and gas division.
Weir said it expected the acquisition to be completed in the third quarter of this year, subject to "certain conditions".
In the three years to the end of December 2016, KOP generated an average of $117m in annual revenues. This year, revenue is expected to drop to about $46m, which Weir said reflected "current international oil and gas market conditions".
Weir Group chief executive Jon Stanton said: "KOP is a great company with a strong management team that we have admired for some time.
"It is a natural fit for Weir and extends our range of wellhead and other pressure control solutions.
"KOP's position in Asia also complements Weir's leading presence in North America and the Middle East and means our group is in an even stronger position to benefit as oil and gas markets recover in the future."