Weir buys US knife gate valve producer
Based in Niles, Michigan, Delta employs approximately 70 people and generated EBITDA of approximately US$6.2 million over the last 12 months.
Weir will pay US$37 million on completion of the acquisition, US$21 million in cash from existing bank facilities and US$16 million in new equity. Up to a further US$10 million in cash will be paid over the next 18 months, contingent on the business meeting certain profit growth targets.
The acquisition extends Weir Minerals’ presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife gate valves
, for use in the transportation of slurry.
“Delta’s strong brand and reputation, together with Weir’s global capability, mean we will be able to offer our customers new ways to increase efficiency at a time when the industry is focused on reducing costs and increasing productivity,” said Keith Cochrane, chief executive of the Weir Group.
Mark Johnson, vice president of Delta, said: “We are delighted that Delta will be joining one of the world’s leading engineering businesses. Delta will be able to take advantage of Weir’s presence in more than 70 countries, bringing our valves technology to customers all over the world. We see significant opportunities ahead in what remain long-term growth markets.”