Weir Group PLC (LON:WEIR) has agreed to sell its flow control division to private equity investment firm First Reserve for £275mln.
The group announced plans to sell the unit, which provides pumps and valves for power, industrial and oil and gas applications, in April last year along with the acquisition of mining equipment firm ESCO Corp for US$1.3mln.
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The sale of the division is subject to working capital and debt-like adjustments as well as regulatory approval.
The deal is expected to be completed in the second quarter of 2019.
Following completion, more than 80% of Weir’s revenues will be from “attractive aftermarket-intensive mining and upstream oil and gas markets”, the company said.
“The decision to sell Flow Control is part of Weir's recent portfolio transformation which focuses the group on where we can maximise long-term value - building on our strong global leadership positions in mining and upstream oil and gas markets,” said chief executive Jon Stanton.