Pump-maker Novatech Sold to Scottish Firm
Transaction is expected to expand the Texas company’s products operations internationally
January 26, 2012
A Scottish engineering firm that specializes in the energy industry has acquired Dallas-based Novatech LLC for £113 million ($176 million) in cash.
This marks The Weir Group's second acquisition in Texas within the past two months, picking up Novatech, a producer of pump valves and valve seats for high-pressure oil and gas applications.
Novatech's chairman and chief executive Starr Pitzer said in the Jan. 25 release that the deal allows the company to market its products, used in the hydraulic fracturing proces, in international markets.
Glasgow-based Weir expects to complete the transaction in February, subject to regulatory approvals.
Jones Day is providing legal counsel to Weir with a deal team that includes partners Michael Weinberg and Aaron Stevens.
Novatech recorded revenues of $61.6 million for the fiscal year, as of Sept. 30.
In December, Weir closed its acquisition of Seaboard Holdings Inc., a Houston-based manufacturer of pressure control equipment, from Industrial Growth Partners for $675 million.
In June 2011, it expanded its operations overseas by purchasing a majority interest in HIM Tech Co. Ltd., a South Korean valves business.
The company currently trades on the London Stock Exchange under the ticker WEIR. Its market capitalization is roughly £421.2 billion ($657.1 billion).
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