Weir acquires US drilling firm Mathena for $240m

Weir said the acquisition of Mathena was a close strategic fit with its existing business

Global engineering company Weir Group has agreed to buy US firm Mathena, strengthening its presence in the American shale gas sector.

Weir will initially pay $240m (£148m) for the firm with a deferred payment of up to $145m (£90m) depending on performance targets.

Oklahoma-based Mathena makes and rents out specialist equipment used in fracking.

Glasgow-based Weir said the deal supported its expansion in this area.

Commenting on the acquisition, Weir chief executive, Keith Cochrane, said: "Mathena is a well-regarded business in the US upstream oil and gas markets, with a strong management team and market share in the pressure control drilling markets.

"This deal is a close strategic fit with our existing pressure control business and gives us a larger suite of products which we can sell to the expanded customer base."

He added: "The business has strong growth potential and increases our exposure to shale oil and gas, markets with attractive long-term structural growth prospects."

Weir has made a number of acquisitions throughout the year to boost its presence in the booming shale oil and gas industry in the US, which now accounts for about a third of the company's revenues.

The takeover of Mathena is expected to be completed by the end of this year.