The Weir Group PLC has agreed to acquire Seaboard Holdings Inc, an independent wellhead solutions provider focused on the growing North American unconventional oil and gas drilling and production markets for US$ 675 million (£431 million).
Based in Houston, Texas, 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.
Seaboard's range of high-end surface equipment is directly adjacent to Weir's market leading portfolio of frac pumps and other well completion equipment.
The acquisition of Seaboard is consistent with Weir's strategy of extending its upstream market presence in aligned markets with positive fundamentals. The global surface equipment market is expected to benefit from higher drilling activity and increasing well complexity, leading to growing demand for wellhead and pressure control products.
Commenting on the acquisition, Weir Chief Executive, Keith Cochrane, said, "Seaboard is a well-managed business, with a strong position in a market that we understand well. The acquisition is perfectly in line with strategy. It broadens our product offering and fits into our business model of growing the installed base of original equipment from which we drive aftermarket opportunities."