Engineering major Weir Group close to selling company unit for USD 390 million

Engineering company Weir Group Plc is close to selling a unit, which supplies pumps and valves to power and oil and gas industries, for more than 300 million pounds ($390 million), a source with knowledge of the matter told Reuters.

The 148-year-old company said in April that it would start a process to sell the flow-control division, which contributes about 15 percent to its total revenue. The source said U.S.-based private equity firm First Reserve Management was among a number of buyers eyeing the unit.

"The process is ongoing and there are still a number of interested parties that are looking at the asset," the source said. The proposed sale comes after oilfield services companies were hit by a slowdown in demand last year as regional oil prices fell due to transportation bottlenecks faced by producers. Weir, which agreed to buy ESCO Corp for $1 billion last year to bolster its mining business, declined to comment. First Reserve did not immediately respond to a request for comment.