Weir Group to sell flow control division for £275mStaff Writer | February 25, 2019
Weir Group on Monday said it was selling its flow control division to private equity firm First Reserve for £275m in cash.
Acquisition Weir said it would retain Flow Control's defined benefit pension liabilitie
Chief executive Jon Stanton said the decision to sell Flow Control was part of Weir's recent portfolio transformation to focuses the group on mining and upstream oil and gas markets.
The net proceeds of the sale will be used for general corporate purposes, including to further reduce leverage and to fund future investment in growth in our core platforms, Weir said.
In the year to 31 December 2018, Flow Control's unaudited financial results included profit before tax of £23m on a pre-exceptional items and intangibles amortisation basis.
Weir said it would retain Flow Control's defined benefit pension liabilities and had agreed to make a £4m one-off contribution from the proceeds of the sale to the scheme.
It added that some of its US subsidiaries will retain the Flow Control legacy asbestos exposure together with corresponding insurance and will provide customary indemnification to First Reserve. ■