The Weir Group PLC : Acquisition

THE WEIR GROUP PLC

                                                                23 November 2011

          Acquisition of Seaboard Holdings Inc for US$675m (£431m(1))
      Weir increases presence in the growing upstream oil and gas markets

The  Weir  Group  PLC  ("Weir")  has  agreed  to  acquire  Seaboard Holdings Inc
("Seaboard"),  an independent wellhead solutions provider focused on the growing
North  American unconventional oil  and gas drilling  and production markets for
US$675m (£431m(1)).

The  consideration will be payable in cash on completion and funded from new and
existing  bank  facilities.   In  line  with  Weir's  acquisition  criteria, the
acquisition  is  expected  to  be  immediately  earnings  accretive and post tax
returns are expected to exceed Weir's cost of capital by 2014.

Based  in Houston, Texas, Seaboard manufactures engineered wellhead and pressure
control  equipment  to  the  oil  and  natural  gas  exploration  and production
industries.  Seaboard  also  provides  a  range  of associated field and support
services,  including equipment  rental into  the onshore  oil and  gas drilling,
completion  and production markets.  The growing shift  in North America towards
unconventional  oil and  gas development  and the  rapid growth of high pressure
hydraulic  fracturing has increased demand for Seaboard's products and services.


Seaboard's  range of high-end  surface equipment is  directly adjacent to Weir's
market  leading portfolio of frac pumps and other well completion equipment with
a  business  model  closely  aligned  to  Weir's  core  competencies  in  highly
engineered products used in harsh environments.

For  the  year  to  31 December  2011, Seaboard  is forecast to achieve proforma
revenues and EBITDA(2) of US$216m and US$58m respectively(3.)

The  acquisition of Seaboard is consistent with Weir's strategy of extending its
upstream  market presence  in aligned  markets with  positive fundamentals.  The
global  surface equipment  market is  expected to  benefit from  higher drilling
activity  and increasing well complexity, leading to growing demand for wellhead
and pressure control products.

Seaboard's  business complements Weir's existing  North American operations, SPM
and  Mesa, providing significant strategic,  operational and financial benefits.
 The acquisition of Seaboard:

  * Extends  Weir's leading position  in the production  and servicing of a wide
    range   of   surface  equipment  targeted  at  unconventional  drilling  and
    completion markets;
  * Broadens the Group's product offering in conventional and unconventional oil
    and gas markets;
  * Complements  Weir's existing customer  base and expanding  access to a broad
    range of exploration and production businesses;
  * Combines  the  extensive  North  American  sales  and  service footprints of
    Seaboard  and Weir  and leverages  Weir's international  routes to market to
    accelerate revenue growth;
  * Builds  a platform for growth into  adjacent markets not currently served by
    either business; and
  * Enhances  productivity  with  the  application  of Weir's lean philosophy in
    Seaboard's production, supply chain and front end business processes.  Cost,
    operating  efficiency and procurement benefits  are expected to exceed US$5m
    by 2014.

The  consideration  is  subject  to  customary  post-closing  adjustments to net
indebtedness  and  working  capital  levels  at  closing.   In addition, U$3m in
deferred  consideration relating to expected tax refunds will be paid six months
after  the closing of the transaction.   Related transaction costs in the region
of US$7m are expected to be incurred and will be recognised in 2011.  Completion
is  conditional on  US regulatory  clearance, and  subject to  such clearance is
expected to take place in December 2011.

Following completion of the acquisition, the existing senior management team led
by Kelly Joy, CEO, will continue to manage the business and will report to Steve
Noon, Divisional Managing Director, Weir Oil and Gas.


Commenting  on  the  acquisition,  Weir  Chief  Executive, Keith Cochrane, said:
"Seaboard is a well-managed business, with a strong position in a market that we
understand  well.  The  acquisition  is  perfectly  in  line  with strategy.  It
broadens  our product offering and  fits into our business  model of growing the
installed   base   of   original  equipment  from  which  we  drive  aftermarket
opportunities.  There  is  great  potential  to  strengthen the business further
through  our lean engineering and operational  processes and extensive sales and
service  networks. We are  confident that the  extended market opportunities and
medium   term  operational  benefits  will  create  significant  value  for  our
shareholders.    We  retain  financial  flexibility  to  pursue  organic  growth
initiatives and further acquisition opportunities in line with our strategy."

Kelly  Joy, Seaboard's President and CEO, added:  "In recent months we have been
looking  for  the  ideal  partner  to  take the business forward while retaining
Seaboard's  identity and commitment to customer service.  We have spent a lot of
time  with the  Weir team  and have  been hugely  impressed by the way they have
developed  Weir SPM since its  acquisition in 2007. I am  convinced that this is
the  best outcome for our employees, customers and shareholders. The senior team
at  Seaboard intends to remain  with the business and  we are all excited by the
extensive opportunities arising from the combination with Weir."

A webcast to discuss the acquisition will be held today at 9am.
Dial-in details are:
UK Free Call   0800 694 2573   UK Standard International   [phone]
Conference ID: 30932866
The URL to view the presentation is:
https://weir.webex.com/weir/j.php?ED=193535867&UID=0&RT=MTgjMjE%3D


Contact details:  The Weir Group PLC

Vicky Ferrier, Head of IR and Communications Tel. [phone]

Jonathan Milne, Communications Manager       Tel: [phone] 378 9536

The Maitland Consultancy                     Tel. [phone]

Peter Ogden / Rowan Brown



Notes:
(1) Exchange rate of £1 = US$1.565 at closing in London on 22 November 2011
(2) Earnings before interest, tax, depreciation and amortisation
(3)   Proforma  unaudited  financial  information  which  assumes  a  full  year
contribution  from AJ  Industries, the  removal of  non-recurring items  and the
application of Weir's depreciation policy in respect of rental assets.
About Seaboard International

Seaboard  achieved 2010 revenues and profits before  tax of US$96.7m and US$4.3m
respectively  and had gross assets of US$213.2m at 31 December 2010.   The table
below  contains unaudited proforma(3) financial  information, including the July
2011 acquisition  of AJ Industries, a Canadian distributor of wellhead products.
 In  the  year  to  September  2010 AJ  Industries achieved revenues and profits
before  tax of C$56.6m and profits before tax  of C$0.4m and had gross assets of
C$24.7m at 30 September 2010.

----------------------------------------------------------------------------
 US$m                     12m to   9m to    3m to    Forecast 12m to Dec-11
                          Dec-10   Sep-11   Sep-11
----------------------------------------------------------------------------
 Sales(3)                 163.1    156.7     57.3            216.0

 Normalised EBITDA(2,3)    34.0     40.4     16.5             58.0

 Normalised EBITA(3)       24.7     33.6     14.1             49.0
----------------------------------------------------------------------------

Seaboard  is being acquired  from Industrial Growth  Partners and the management
team.

Founded  in  1974, Seaboard  is  one  of  the few remaining independent wellhead
solutions  providers, manufacturing proprietary engineered wellhead and pressure
control  equipment.  Seaboard  offers  a  complete wellhead and pressure control
equipment  solution,  providing  a  range  of  pressure control equipment, field
services, repair, frac equipment rental and tubular distribution.

The  current senior management group plans  to remain with Weir, including Kelly
Joy, President and CEO, who joined the company in 1996. Since 1996, Seaboard has
evolved  into  one  of  the  largest  independent  manufacturers of wellhead and
pressure  control equipment in  the USA, including  high pressure frac trees for
use  in  hydraulic  fracturing  applications.  Seaboard also provides associated
installation   and   field   services.   Seaboard's   headquarters  and  primary
manufacturing  facilities are located in Houston,  Texas, USA. Seaboard has over
20 locations  covering the major oil  & gas basins in  North America. It employs
approximately 400 people. See www.seaboardusa.com for further information

About The Weir Group PLC
Weir,  a FTSE 100 company, is a global  provider of engineering solutions to the
minerals,  oil  and  gas  and  power  sectors.  Our  commitment  to  engineering
excellence,  research  and  customer  focus  extends  equipment  wear  life  and
operational capability in some of the world's most challenging environments.

Weir  is committed to going where our  customers go, with a worldwide network of
more  than 140 manufacturing facilities and service  centres. The business has a
presence  in more than 70 countries, with  13,000 staff around the world working
in  our three  divisions; Minerals,  Oil &  Gas and  Power &  Industrial. Weir's
customer  base includes  the world's  largest mining  houses, major oil services
businesses and nuclear and conventional power generation companies.

Annual  revenues were more than  £1.65 billion in 2010, of  which more than half
came  from the provision  of services and  aftermarket support. Emerging markets
contributed 39% of overall Group revenues.

Weir's  Oil &  Gas division  is the  leading supplier  of high  pressure pumping
equipment  to the  upstream oil  and gas  market.  The  division also produces a
range  of flow control products targeted at the high pressure applications found
in  the pressure pumping market.  Weir's  Oil and Gas service operations support
clients  across  North  America,  the  Middle  East  and Europe.  The division's
downstream  operations  manufacture  process  pumps  for  use in the hydrocarbon
processing  industries.  In  2010 the  division  reported  revenues of £462m and
employed over 3,000 staff.

See www.weir.co.uk for further information.







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