Weir Group Regulatory News (WEIR)

9 May 2007 07:00

Weir Group PLC08 May 2007 The Weir Group PLC 8 May 2007 Sale of Weir Pumps, Glasgow The Weir Group PLC ("the Weir Group") has sold its Glasgow based operation, WeirPumps, to Clyde Pumps Ltd, a Clyde Blowers portfolio company ("Clyde"), for acash consideration of approximately £45 million. In the year ended 29 December2006, the Weir Pumps business generated third party revenues of £70.5 millionand operating profits of £4.2 million. All employees of Weir Pumps will transfer to Clyde. Clyde's strategy goingforward is to continue with Weir Pumps' new equipment and spares business and tobuild a centre of excellence in pump technology, hydraulic design andengineering in Glasgow. Clyde has confirmed that it will continue to run the business from the Cathcartsite, which remains with the Weir Group, until 2009. Thereafter Clyde intends toinvest in a world class test, development and manufacturing facility in thegreater Glasgow area with an ongoing expectation of more than 400 employees. The Services Division does not form part of the sale and will remain part of theWeir Group. Under the agreed terms, Weir Services will retain its existingcommercial relationship with the pumps business including access to intellectualproperty and an exclusive service relationship with Clyde in the key markets ofthe UK, Middle East, Canada, and Australia Following the transaction, the Weir Group, with an annual turnover of£941 million, remains a major force in the pump industry through its globalmanufacturing and sales operations. Mark Selway, Chief Executive of The Weir Group PLC, said: "The Weir Group today is focused on specialist high margin flow control productsin mining, power and oil. The Weir Pumps Glasgow business represents less than8% of Weir Group revenue and less than 5% percent of annual profits. Followingthe termination of our discussions with Sulzer AG we evaluated all optionsregarding the future of Weir Pumps and the sale to Clyde represents the best wayforward for the business, employees and shareholders alike." Contact details: The Weir Group PLC 0141 637 7111Helen Walker, Public Relations Manager 0141 308 3739 (Mobile: 07789 032296) Maitland Tel. 020 7379 5151Suzanne Bartch (Mobile: 07769 710 335)Peter Ogden (Mobile: 07811 124 197) This information is provided by RNS The company news service from the London Stock Exchange