First Reserve Carves-Out Weir Flow Control
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First Reserve Carves-Out Weir Flow Control

First Reserve has agreed to acquire Weir Flow Control (WFC), a manufacturer of valves and pumps, from The Weir Group PLC for £275 million ($360 million).

WFC is a manufacturer and aftermarket services provider of pressure relief, control and isolation valves and centrifugal pumps for use in the downstream, midstream, utility and industrial sectors. Click HERE for the website of WFC.

Once the transaction is closed, which is expected by the end of the second quarter, WFC will continue to be led by current CEO David Paradis and his management team.

“Weir Flow Control provides high-quality products and services, critical to the safe operations of our clients in the downstream, midstream, utility, and industrial end markets,” said Mr. Paradis. “As an organization, we enjoy strong long-term relationships with our customers and pride ourselves on innovation that places the customer first. We thank Weir Group for their support over the years and are excited to partner with First Reserve in this next chapter for our company.  We look forward to benefiting from First Reserve’s experience in the flow control sector as we seek to grow our global business.”

First Reserve invests in energy-related companies including those that are active in the resources, equipment and services, and midstream and downstream infrastructure sectors. Since its founding in 1983, the firm has completed more than 650 transactions (including platform investments and add-on acquisitions).

“First Reserve has deep historical experience creating value for our investors in the flow control space, and we are pleased to partner with Weir in this carve-out transaction,” said Jeff Quake and Neil Hartley, both managing directors at First Reserve, in a released statement. “In our view, Weir Flow Control represents an attractive growth platform in a fragmented sector, with internationally recognized brands driven by recurring high-margin aftermarket parts and services which have proven to be resilient through multiple economic environments.  We look forward to supporting David Paradis and his talented management team to promote both organic growth and acquisitive expansion of the platform as we seek to drive value on behalf of our investors.”

First Reserve has offices in Houston, TX; Stamford, CT; and London, UK (www.firstreserve.com).

The Weir Group (LSE: WEIR), headquartered in Glasgow, Scotland, is an engineering company serving the mining, infrastructure and upstream oil and gas sectors. The company was founded in 1871 and has annual revenues of more than £2.3 billion (www.global.weir).

© 2019 Private Equity Professional | February 26, 2019

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