15th Oct 2014 06:41
LONDON (Alliance News) - The Weir Group PLC Wednesday said it has entered into an agreement to buy Chinese-American crushing and separation equipment manufacturer Trio Engineering Products.
The FTSE 100-listed group will pay USD220 million to buy the company, which it said will expand its portfolio for mining customers and will provide it with scale in growing aggregates markets.
Weir will fund the deal via existing bank facilities and said the deal will be immediately earnings accretive, with post-tax returns from the deal expected to exceed the cost of capital for Weir group within its first year of ownership.
The integration costs on the deal are forecast to hit around USD10m over two years, Weir said.
"This agreement will allow Weir Minerals to build upon its successful comminution strategy. We'll use our group's unrivalled global capability to promote Trio's range of complementary products, extending our addressable market and offering our mining customers a wider range of highly-engineered equipment and services," said Keith Cochrane, chief executive of Weir Group.
Comminution is the reduction of solid materials from one average particle size to a smaller average particle size, by crushing, grinding, and other processes.
By Sam Unsted; [email protected]; @SamUAtAlliance
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