The Weir Group PLC has entered into an agreement to acquire KOP Surface Products, a provider of advanced surface pressure control technologies, systems and services for the oil and gas industry for $114 MM in cash. KOP’s history stretches back to 1934 and it has market positions in Asia, with an emerging business in the Middle East. The business is being acquired from Akastor ASA, a Norwegian-listed investor in oilfield services.
KOP employs approximately 450 people and designs and manufactures wellheads, surface trees, valves, actuators and aftermarket services. The business is headquartered in Singapore and has a manufacturing facility in Batam, Indonesia, in addition to a network of sales and service offices in Asia Pacific and the Middle East. KOP’s current management team will continue to lead the business, reporting into Weir’s Oil & Gas division.
Completion is subject to the fulfilment of certain conditions and is anticipated to take place in Q3 2017. The transaction consideration payable to Akastor will be settled in cash, funded through the issue of new ordinary shares equivalent to approximately 2% of issued capital. As corporate broker to Weir, UBS has entered into an agreement in connection with this issue of new ordinary shares. These shares will be issued, subject to market conditions, over the coming weeks up to the middle of August 2017 at a price determined by reference to average prices of ordinary shares over