UK-based engineering company Weir Group has reportedly started the divestment of its flow control business.
The company disclosed its intention to pursue the sale of the business in April, along with the $1.285bn acquisition of surface mining tools company Esco.
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Weir Group’s pumps and valves supply business is valued at more than £300m ($389m), Reuters reported citing unnamed sources.
Ahead of an auction of the business, the company’s bankers provided confidential information about the division to prospective buyers. Goldman Sachs has been appointed to supervise the sale.
One of the sources told the news agency that first round bids are expected to be received on 9 November.
The flow control business’ core earnings for next year are projected to be around £38m. The business unit is a supplier of pump and valve products to different sectors, including oil and gas, and power generation.
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By GlobalDataWeir Group offers spring-loaded pressure relief valves, pilot-operated pressure relief valves, changeover valves, and low pressure and vacuum pilot-operated pressure relief valves.
In April, the company stated that it would use the proceeds from the disposal to reduce leverage and fund future investment in growth in core platforms.
Founded in 1871, Weir Group has a market value of £3.8bn. The company’s annual revenues for last year stood at £2.4bn. Its services for the oil and gas industry include drilling, well completion, production and downstream operations worldwide.
The firm expects that the acquisition of Esco and sale of the flow control unit will allow it to shift focus to mining and the upstream oil and gas markets.
The Esco transaction was closed in July.
