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Weir’s shares rise after American Hydro acquisition
- 14 years ago (2010-11-22)
- Junior Isles
Shares in Weir Group recently surged to a record high as the Glasgow-based engineering company announced the acquisition of American Hydro Corporation, which makes turbine components for hydro power generation.
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Weir plans to use the acquisition of the Pennsylvania-headquartered company, with which it worked on projects in Scotland in the late 1990s, as a springboard to accelerate its development in established hydro power markets throughout the Americas and Europe.
Weir was promoted to the UK’s prestigious FTSE-100 index earlier this year after a September leap in its stock price.
Weir would not disclose the price paid for the privately-owned American Hydro, which is based in York in Pennsylvania. However, it is understood to be a relatively small bolt-on deal for Weir.
Keith Cochrane, chief executive of Weir, said: “Hydro power is the world’s largest source of renewable energy. American Hydro has a particular strength in improving the efficiency of existing stations, a field in which Weir has extensive experience in the UK and Canada.
“Combined with American Hydro, we have the engineering depth and skills to accelerate our development in established hydro markets throughout the Americas and Europe, where there is great potential for electricity companies to improve renewable energy output in an economically attractive manner.”