The Scottish Engineering company, Weir Group, has entered into a deal to buy the American mining tools producer Esco for approximately USD $1 billion. This new announcement came just as the company said it was putting its flow-control division up for sale so it can better focus on its minerals and oil & gas businesses.
Weir makes pumps and valves for the mining and energy industries, while Oregon-based Esco produces parts for the surface mining and construction sectors. Under the terms of the acquisition, Esco shareholders will receive 59% of the deal value in cash, with the remainder in new Weir shares. The transaction is expected to complete early in the third quarter of this year.
Weir chief executive Jon Stanton said, “Today we are announcing an important development of our portfolio as we focus on building on our core strengths in minerals and oil and gas. Together, Weir Minerals and Esco will create a unique customer proposition as the premium provider of mission critical surface mining solutions from extraction to concentration, built on proprietary technology, superior wear life and supported by an unrivalled service network.”
Image courtesy of Weir Group