WEIRBULLETIN | FEBRUARY 2012 ACQUISITION UPDATE & INITIATIVES MINERALS OIL & GAS POWER & INDUSTRIAL


Keith Cochrane breaks ground for the next phase of capacity expansion at Weir SPM in Fort Worth, Texas, fl anked by Steve Noon, Divisional Managing Director, Weir Oil & Gas (left of picture), Lord Smith, Chairman and Paul Coppinger, President, Weir SPM (right of picture)


Groundbreaking ceremony for record breaking division


The performance of Weir Oil & Gas in 2010 and 2011 has been outstanding, largely


due to the efforts of the upstream operations as they successfully expanded capacity in positive markets. Supporting that performance has been good people, with more than 1000 new employees added at Weir SPM alone over the last two years. With many of these employees based at the


Fort Worth campus and the need for increased dedicated manufacturing and service space, development of the new divisional headquarters


and Weir SPM facilities got underway in December 2011. An offi cial groundbreaking ceremony took


place on the land where the new main building will be constructed, attended by employees, CEO Keith Cochrane and Divisional Managing Director, Steve Noon. After a Texan style lunch of fajitas and iced tea, employees old and new were recognised for their hard work by Weir SPM President, Paul Coppinger and Weir Group chairman, Lord Smith, who made the keynote address to the the crowd, outlining the strength of


Novatech slots into place at Weir


The Weir Group announced the acquisition of Novatech in January 2012. Novatech, a supplier of well service pump valves and valve


seats, engineered ‘consumable’ components of frac, cement and mud pumps is being acquired for US$176m. The business is based in Dallas, Texas and has around 60 employees. Novatech is a well-respected brand in the US market and is an existing supplier to Weir SPM, where its durable products are used in Weir’s pump fl uid ends. Typically, valves and seats are replaced every couple of weeks, making this a very attractive aftermarket opportunity with further opportunities to package products as part of the broader Weir offering to upstream oil and gas customers. Novatech serves similar markets and customer bases to Weir SPM


and Weir Mesa and the engineering requirements of its products, being designed for harsh operating environments, align closely to Weir’s expertise and business model. In short, Novatech is a perfect fi t as Weir expands its presence in unconventional oil and gas markets.


the upstream operations and their important place in the Group. Also on display was the new “Weir Way” street sign as the city of White Settlement renamed the street that the new development will be on in recognition of Weir SPM’s continued support for local development and employment opportunities. Finally, Lord Smith, Keith Cochrane, Steve Noon and Paul Coppinger provided the muscle for the ceremonial dig, to huge cheers from the onlooking employees. Construction of the new development is to be completed in Autumn 2012.


Novatech facility in Dallas, Texas


Growth opportunities will come from offering an extended package of aftermarket pump expendables products, using Weir’s footrpint to provide broader sales and service support and opening up international markets to Novatech’s product offering. The acquisition is currently under regulatory review and when completed, the integration team will begin working with Novatech and Weir management to align the business to Weir processes and systems.


05


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28