Glasgow-based global engineering giant Weir Group said on Tuesday it has completed the sale of its oil and gas division to Caterpillar Inc.

“The sale, for an enterprise value of $405m, subject to customary working capital and debt-like adjustments, was first announced on 5 October 2020 and approved by Weir Shareholders on 23 November 2020,” said Weir.

“Since then, the group’s joint venture partner in Saudi Arabia-based Arabian Metals Company (AMCO) has exercised its pre-emption right, as set out in the Class 1 circular published on 3 November 2020, to purchase Weir’s 49% stake in AMCO. 

“Therefore, the cash proceeds from the sale of the division, subject to customary working capital and debt-like adjustments, will be split between $375m received from Caterpillar Inc. and $30m to be received on completion of the sale of AMCO, which is expected to occur in the first half of this year.”

Weir Group has 11,000 employees in over 60 countries.

The company’s share price has risen more than 40% over the past 12 months to give it a current stock market value of around £5 billion.

Weir Group CEO Jon Stanton said: “I would like to thank the Oil & Gas team for their magnificent contribution to Weir over the years. 

“The sale delivers a great new home for the business and its people, and enables Weir to fully focus on our role as a provider of premium technology to global mining and infrastructure markets.”