Weir Group buys Mesa Manufacturing

Scottish engineering group Weir Group Plc has bought US company Mesa Manufacturing in a cash deal worth $40 million (£20 million).

The family-run business in Odessa, Texas, was established more than 25 years ago and specialises in manufacturing cementing pumps and other products for the oil and gas drilling and well service industries in domestic and overseas markets. The company turned over more than $20 million (£10 million) last year.

This latest acquisition comes on the back of the CH Warman Pump Group deal in March. Weir bought the pump business, serving the mining and minerals processing industry throughout Africa, for $23 million (£12 million). The group has stated that the acquisition will be immediately earnings enhancing and generate a return on the cost of capital within three years.

As part of the deal, Weir will take on some $2 million (£1 million) of debt.

In April, the group sold Weir Strachan & Henshaw (S&H), an engineering design, project manager and support services provider for the defence and nuclear industries, for £65 million.

S&H, which supports the Royal Navy submarine and surface ship fleet, was acquired by engineering support services company Babcock International Group to bolster its marine division and extend its range of marine support services.

A spokesman for the Weir Group said the proceeds of the disposal would be used to develop its activities in specialist higher margin businesses.

Marc Barber

Raven Connelly

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

Related Topics

Venture capital funding