SHARES in Weir Group edged up two per cent last night after the engineering giant said it had completed the sale of its Flow Control division.
Weir struck a deal to offload the loss-making business earlier this year as it looked to focus on its core markets supporting the global mining industry and shale gas production in the US.
The £275 million sale of Flow to US private equity group First Reserve completed on June 28, having been first announced on February 25. Flow Control, which provides components to the renewable, conventional and nuclear energy sectors, had been up for sale since April last year.
READ MORE: Glasgow engineering giant hit by US slowdown
As a result of its disposal, Glasgow-based Weir said around 80 per cent of its business will come from the mining industry, with the balance generated by oil and gas activity. While exiting Flow Control, Weir was simultaneously enhancing its position in minerals with the $1.3 billion acquisition of ESCO, an Oregon-based supplier of ground-engaging tools to the mining and construction industries. That deal was completed in July last year.
Weir Group chief executive Jon Stanton said: “The sale of the Flow Control division marks an important step in successfully delivering our strategy. It means Weir is now a more focused business with strong positions in premium upstream mining and oil and gas markets around the world.
READ MORE: Weir bullish on outlook for 2019 after 'huge' year
“On behalf of everyone at Weir I would like to thank David Paradis and the Flow Control team for their long-standing contribution to the group and we wish them every success in the future.”
In April, Weir highlighted reduced activity in the US shale sector as it reported a seven per cent fall in underlying orders for the first three months of the year. It flagged capital and pipelined constraints in North America as oil and gas orders dipped by 23%, though it highlighted good momentum in mining markets.
Shares in Weir closed up 30.5p at 1,577p.
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