BDA advises The Weir Group on acquisition of valves business from HIM Tech, Korea

Business Development Asia LLC (“BDA”) is pleased to announce that its client, The Weir Group PLC (“Weir”), a global leader in the design, supply and ongoing service of engineering equipment and solutions for the mining, oil & gas and power & industrial sectors, has agreed to acquire 60% of a new Korean company, Weir International, into which the valves business of HIM Tech Co Ltd (“HIM Tech”) has been transferred. Terms of the transaction were not disclosed.

Located in Ansan, near Seoul, Korea, HIM Tech designs and manufactures control and choke valves for severe service power generation and oil & gas applications. As well as domestic customers, its products are supplied to major Korean engineering contractors for international projects.

Keith Cochrane, CEO of Weir, commented: “This acquisition in South Korea, one of the “Next 11” high growth economies, increases our global capability, allowing us to add local content in Korea and provides strong links to a number of important Korean contractors who supply both the home and international markets.  The team at HIM Tech, led by Heang Hoon Cho, are already well known to us as trading partners. In recent months we have been collaborating on a number of initiatives which we expect will generate new orders for our global valves business.”
Heang Hoon Cho, who will continue as president of the Ansan operation under the Weir banner, added: “I have worked with Weir for 17 years, first as agent and then licensee, and I am delighted that we are becoming an integral part of the Weir Group. The acquisition opens many new avenues to expand the business both in Korea and with Korean customers worldwide.”

The transaction is expected to be completed during the course of July.

BDA acted as the exclusive financial advisor to Weir on the transaction. BDA also advised Weir on the acquisition of the valves business of BDK Engineering Industries in India in 2010.