Weir buys Italian pumps

The Weir Group has signed a €100 million agreement to purchase 100% of the issued share capital of Pompe Gabbioneta, a specialist petrochemical pump business located in Milan, Italy. The transaction is expected to complete on or before 30 September 2005.

Gabbioneta manufactures speciality pumps primarily for the downstream end of the oil and gas market. The company’s customers include oil majors and leading engineering contractors and is ranked number three in the European, Middle East and African petrochemical pump market.

For the year to 31 December 2004, Gabbioneta reported sales of €44.8 million; earnings before interest, tax and amortisation (EBITA) of €6.7 million and profit before tax (PBT) of €3.1 million.

Gabbioneta, which operates from two facilities in Milan, employs 240 people. The business was established in 1897 and was most recently owned by private equity funds led by Aksia Group.

Commenting on the acquisition, Mark Selway, Chief Executive said, “This is a significant development for the Weir Group. Our strategy is focused on consolidating our position in the specialist pump market and building a portfolio of high quality high margin businesses. The acquisition of Gabbioneta achieves both.