Glasgow-based engineering giant Weir Group said it agreed to acquire Singapore-headquartered oil and gas technology firm KOP Surface Products from Norwegian-listed Akastor ASA for about $114m in cash. 

Weir Group chief executive Jon Stanton said: “KOP is a great company with a strong management team that we have admired for some time. 

“It is a natural fit for Weir and extends our range of wellhead and other pressure control solutions. 

“KOP’s position in Asia also complements Weir’s leading presence in North America and the Middle East and means our group is in an even stronger position to benefit as oil and gas markets recover in the future.”

Weir employs around 14,000 people and has customers in more than 70 countries.

KOP’s history stretches back to 1934 and it has leading market positions in Asia with an emerging business in the Middle East. 

Weir said that in the three years ending December 2016, KOP generated an average of $117 million in annual revenues and $21 million in annual EBITDA. 

In 2017, KOP is expected to generate revenues of $46 million and $2m of EBITDA “reflecting current international oil and gas market conditions,”  Weir said.

“The transaction consideration payable to Akastor will be settled in cash, funded through the issue of new ordinary shares equivalent to approximately 2% of issued capital,” said Weir.

“As corporate broker to Weir, UBS has entered into an agreement in connection with this issue of new ordinary shares.

“These shares will be issued, subject to market conditions, over the coming weeks up to the middle of August 2017 at a price determined by reference to average prices of ordinary shares over the period. “

Weir also gave an update on its trading, saying: “Order input trends in April and May were in line with expectations and the group’s full year guidance for 2017 is unchanged. 

“As previously indicated, and reflecting these order trends, profits are expected to be weighted to the second half.”