18th Jun 2025 12:26
(Alliance News) - Weir Group PLC on Wednesday said it has agreed to buy US-based Townley Engineering & Manufacturing Co Inc and Townley Foundry & Machine Co Inc for an enterprise value of GBP111 million, to strengthen its North American manufacturing footprint.
The Glasgow, Scotland-based engineering firm said the Florida-based companies manufacture engineering products which are used to process minerals.
The acquisition will strengthen Weir's presence in the phosphate market, a key mineral in modern fertilisers, the company explained.
Townley is a provider of mining wear and abrasion solutions including slurry pumps, dredge pumps and cast foundry products.
The company's operations, including a foundry, are based in Ocala which is located in the phosphate mining region of north central Florida.
Weir said Townley's footprint of locations will improve its channels to market in North America, as in-region manufacturing capabilities support localisation and reduce lead-times.
"The acquisition of Townley will significantly enhance our geographic presence in North America, enabling us to serve customers in the region more effectively and sustainably. It enhances our domestic manufacturing platform and strengthens Weir's position in the attractive market for phosphate, an important mineral in the fertilisers that are needed to support population growth," said Weir Chief Executive Jon Stanton.
"Townley is a highly complementary addition to Weir. We are looking forward to welcoming the team of more than 360 colleagues to Weir and are excited by the opportunity to combine our expertise to enhance productivity and sustainability for our customers."
The transaction is expected to complete in the third quarter of 2025, subject to US antitrust approvals.
Townley will be integrated into the North American region within Weir's Minerals division.
Weir expects the deal to be accretive to earnings per share in the first full year of ownership, with return on invested capital forecast to exceed weighted average cost of capital in 2028.
The acquisition will be funded by existing loans and has no impact on Weir's previous net debt guidance for financial 2025 and 2026, it said.
Shares in Weir Group were down 1.0% at 2,506.00 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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