Weir Group


The Weir Group plc is a British engineering company headquartered in Glasgow, Scotland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
The company operates in over 70 countries employing approximately 14,000 people focused on mining, oil and gas and power markets.

History

The company was established in 1871 as an engineering firm by two brothers, George and James Weir, founding G. & J. Weir Ltd. The Weir brothers produced numerous groundbreaking inventions in pumping equipment, primarily for the Clyde shipyards and the steam ships built there. These pumps became extremely well known for their use as boiler feedwater pumps, and for ship's auxiliary equipment such as evaporators.
Under W D Weir, the company turned to producing munitions and war materiel in the First World War. As well as shells, they manufactured aircraft including the Royal Aircraft Factory F.E.2 fighter and bomber. James George Weir a director of the company formed the Cierva Autogiro Company. G & J Weir would be a financial supporter of the company during its existence. In 1943, they provided the finances for the construction of the W.9, an experimental helicopter, to Air Ministry requirements.
It was first listed on the London Stock Exchange in 1946. Double-acting Weir steam pumps were virtually standard fitment on British-built steamships, being used for pumping water, fuel, air and much else well into the 1950s, as well as being used on other ships worldwide. In December 1968 the Weir Group made an offer to buy the rival British pump manufacturer Worthington-Simpson, following an offer by Studebaker-Worthington.
In 1969 Studebaker-Worthington acquired Worthington-Simpson.
After some negotiation, Weir's acquired 50% of Worthington Simpson.
A new joint-venture company named Worthington Weir was set up to handle international sales of the two parent companies.
The debt taken on by Weir to acquire their share of Worthington-Simpson was denominated in Deutsche Marks, and as that currency strengthened against sterling and the dollar it became increasingly expensive to service.
Worthington-Simpson was profitable, but did not cover the cost of debt.
During the next decade Weir was forced to sell off many assets and undertook financial reorganization in 1981.
After the financial reorganization, Derald Ruttenberg and Jacob Rothschild gained effective control of 40% of the company.
Ruttenberg became a board member. At the reorganization,the 3rd Viscount Weir,who had been chairman since 1972,stepped down to vice chairman,but Lord Weir regained the chairmanship in 1983 and served until 1999.
In 1989, the company acquired Hopkinsons, an Elland-based company manufacturing valves and controls.

21st century

In July 2005, Weir sold its desalination and water treatment businesses, to Veolia Water Systems, part of the water division of Veolia Environnement: Weir Westgarth had been a pioneer of the multi-stage flash distillation process used predominately to produce desalinated water from seawater.
In May 2007, the company sold its Glasgow-based business Weir Pumps to Jim McColl's Clyde Blowers plc, with the pump company subsequently being renamed to Clyde Pumps Ltd.
In February 2015 the company issued a profit warning predicting significant losses; the U.S. shale market had experienced a contraction, and the company had to reduce its workforce by approximately 650.
Recent acquisitions
TransactionDate
Purchased Pompe Gabbioneta, an Italian pump manufacturer for £69m in 2005.2005
In 2007 Weir acquired SPM Flow Control, Inc for US$653 million. SPM manufactures high-pressure well service pumps
and related flow control equipment		2007
Acquired African pumps business, CH Warman Pump Group for $231m 2007
Acquired Mesa Manufacturing Inc, the Texan based pump manufacturer for $40m2008
Bought Malaysia-based Linatex for £138m2010
Agreed to acquire Indian valves manufacturing business, BDK Engineering Industries, Hubli2010
In November, 2010, Company announced acquisition of American Hydro Corporation, which makes turbines for hydro-electric power stations.2010
In November 2010 Weir and Shengli Oilfield Highland Petroleum Equipment Co. announced the formation of a joint venture to provide
high-pressure well service pumps and related flow control equipment to the developing shale gas industry in China.		2010
Agreed to acquire a 60% interest in the South Korean valves business formerly operated by HIM Tech Co Ltd.2011
Purchased Seaboard Holdings Inc a Houston-based wellhead solutions provider for US$675m 2011
Purchased KOP Surface Products, a Singapore provider of advanced pressure control wellhead technologies, systems and services for an enterprise value of US $114m2017
Purchased ESCO Corporation, a Portland-based global leader in ground engaging tools for mining and construction markets for an enterprise value of US $1.285 billion2018

In December 2010, Weir pleaded guilty to breaching UN sanctions on Iraq between 2000 and 2002. Judge Lord Carloway of The High Court in Edinburgh fined the company £3m along with a confiscation order of £13.9m.
In 2011, the company, since renamed Clyde Union Pumps, was sold to the SPX Corporation for £750 million. The business suffered heavy financial losses in the subsequent years and had to make staff redundant as the result of a long-term global downtown in the oil and gas sector.

Operations

With effect from 1 May 2008, the Weir Group reorganised its operating units into three sector- focused divisions in the higher growth markets of mining, oil & gas and power & industrials:
Weir Minerals - manufactures slurry handling equipment and associated spare parts for abrasive high wear applications used in mining as well as in the niche oil sands and flue gas desulphurisation markets. Products include pumps, hydro cyclones, valves, de-watering equipment and wear resistant linings. The division is present in key mining markets, including South and North America, Australia and Africa.
Weir Oil & Gas - designs and manufactures pumps and ancillary equipment for global upstream and downstream oil and gas markets.
Upstream operations specialise in high-pressure well service pumps and related flow control equipment along with repairs, parts and service of pressure control and rotating equipment.
Downstream focuses on design and manufacture of centrifugal pumps, mainly for the refining industry. Principal operations are in North America, Europe and the Middle East.
Weir Flow Control designs, manufactures and supports specialist and critical-service rotating and flow control equipment, in the main, to the global power sector. The division includes valve operations, a specialist pump business and service and aftermarket operations and is one of only a few businesses globally capable of providing specialist valves into the nuclear islands of third generation nuclear power stations. Facilities are located in Europe, North America, China, Middle East, India and South Africa.

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