Scotland’s Weir Group to acquire wellhead specialist Seaboard for $675 mn
24 Nov 2011
Scottish pumps and drilling equipment maker,Weir Group, is buying US wellhead specialist Seaboard Holdings, for $675 million in cash, to expand its presence in the booming shale gas market of North America.
Based in Houston, Texas, privately-owned Seaboard manufactures engineered wellhead and pressure control equipment to the oil and natural gas exploration and production industries.
Seaboard also provides a range of associated field and support services, including equipment rental into the onshore oil and gas drilling, completion and production markets.
Glasgow-based Weir's heavy-duty pumps are used to force sand, chemicals and water into the shale rocks to release the gas, a process called hydraulic fracturing, or fracking, while Seaboard's equipment is used to control the pressure in the wells.
''The growing shift in North America towards unconventional oil and gas development and the rapid growth of high pressure hydraulic fracturing has increased demand for Seaboard's products and services and its equipment complements Weir's portfolio of hydraulic fracturing pumps and other well completion equipment,'' said Weir in a statement.
For the year to 31 December 2011, Seaboard is forecast to achieve proforma revenues and EBITDA of $216 million and $58 million respectively.
