Business
Proposed sale of Weir Oil & Gas
Proposed sale of Weir Oil & Gas.
About this update from Weir Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0353B\n Weir Group PLC\n 05 October 2020\n \n \n \n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n \n \n \n \n \n \n Proposed sale of Weir Oil & Gas to Caterpillar Inc.\n \n \n Transforming Weir into a premium mining technology pure play\n \n \n \n \n \n \n \n \n The Weir Group PLC (\"Weir\" or \"the Group\") is pleased to announce that it has entered into an agreement for the all-cash sale of its entire Oil & Gas division to Caterpillar Inc. for an Enterprise Value of US$405m (£314m)1, subject to customary working capital and debt-like adjustments at closing (the \"Transaction\"). \n \n \n \n \n \n This follows the announcement in February 2020 that Weir would seek to maximise value from its Oil & Gas division as it continued its strategic transformation into a premium mining technology pure play. \n \n \n \n \n \n Delivering transformation of Weir into a premium mining technology pure play\n \n \n \n \n \n · \n Focused on attractive markets underpinned by global demographic trends, the transition to a low carbon society and adoption of new technologies in the mining industry\n \n \n · \n Differentiated aftermarket, service and technology offering with proven earnings stability and strong cash generation through the cycle\n \n \n · \n Strategic intent to build on leading mission-critical positions in the mining supply chain from extraction to concentration and tailings management\n \n \n · \n Strengthened balance sheet to provide enhanced flexibility to invest in future growth opportunities\n \n \n \n \n \n Transaction highlights: A strong outcome for all stakeholders\n \n \n \n \n \n · \n Agreement to sell Oil & Gas division to Caterpillar Inc. for an Enterprise Value of US$405m (£314m)1\n \n \n · \n Net proceeds to reduce the Group's leverage; pro forma Net Debt/EBITDA at 30 June 2020 of 1.9x\n \n \n · \n Transaction facilitates a $70m US cash tax benefit for Weir to be realised over the medium term\n \n \n · \n Transaction subject to Weir shareholder approval; Class 1 Circular to be published in due course\n \n \n · \n Completion expected by the end of 2020, assuming normal regulatory cl...