Weir's Townley acquisition strengthens NA presence

18 June 2025

Press Release

Weir to acquire Townley, strengthening manufacturing and phosphate market presence in North America

Weir, a global leader in mining technology, has entered into a binding agreement to acquire US-based businesses Townley Engineering and Manufacturing Co., Inc. and Townley Foundry & Machine Co., Inc. (combined "Townley"), a leading manufacturer of high-quality engineered products for minerals processing, for a sterling equivalent1 enterprise value of £111m (US$150m). The acquisition will strengthen Weir's market channels and manufacturing footprint in North America, including in the attractive phosphate market, a key mineral in modern fertilisers, essential for global food security and accessibility.

An established name with complementary portfolio and North American footprint

Founded in 1963, Townley is a leading provider of mining wear and abrasion solutions with an extensive product range including slurry pumps, dredge pumps, cast foundry products, valves, urethane parts, hoses and rubber linings. Townley's operations, which include a foundry, and urethane and rubber products manufacturing, are based in Ocala, within the phosphate mining region of north central Florida. These operations also serve Townley's extensive branch service network across the United States, as well as distributor partners in Canada and Central America.

Townley's footprint of strategic locations will enhance Weir's existing North American channels to market and provide access to new customers. Its in-region manufacturing capabilities will enable Weir to drive further localisation and lead-time reduction within North America, aligning strongly with customer needs.

Commenting on the agreement, Jon Stanton, Chief Executive of Weir said:

"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.

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 Q3 2025, subject to the customary US antitrust approvals. Post-completion, the business will be integrated into the North American region within our Minerals division. The deal is expected to be EPS accretive in the first full year of ownership2 with ROIC expected to exceed WACC in 2028. The deal will be financed from existing debt facilities and has no impact to Weir's previous net debt guidance for fiscal years 2025 and 20263.

Notes:

1. Transaction spot rate of 1.35

2. Weir's financial reporting year ended December 2026

3. Net debt to EBITDA is expected to be below 2.0x at December 2025 and below 1.5x by year end 2026

Disclaimer

This information includes 'forward-looking statements'. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding The Weir Group PLC's (the "Group") financial position, business strategy, plans (including development plans and objectives relating to the Group's products and services) and objectives of management for future operations, are forward-looking statements. These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. These forward-looking statements speak only as at the date of this document. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Past business and financial performance cannot be relied on as an indication of future performance.

About The Weir Group PLC

Founded in 1871, The Weir Group PLC is one of the world's leading engineering businesses with a purpose to make its mining and infrastructure customers' operations more sustainable and efficient. Weir's highly engineered technology and digital solutions enable critical resources to be produced using less energy, water and waste while reducing customers' total cost of ownership. The Group is ideally positioned to benefit from structural trends that support long-term demand for its technology including the need for more essential metals to support economic development and carbon transition. The Group has c.12,000 employees operating in over 50 countries with a presence in every major mining region of the world. Find out more at www.global.weir.

Weir's ordinary shares trade on the London Stock Exchange (ticker: WEIR LN) and its American Depositary Receipts trade over-the-counter in the USA (ticker: WEGRY).