(Alliance News) - Weir Group PLC on Monday said it has acquired Carriere Industrial Supply Ltd, a manufacturer of wear parts and aftermarket services provider to the Canadian mining industry, for an enterprise value of GBP20 million.
Carriere Industrial's products include mining buckets and lip systems.
Carriere will join Weir's ESCO division, and the acquisition is expected to be earnings accretive in the first year with returns set to exceed the group's cost of capital in the first full year of ownership.
"The acquisition of CIS aligns with our strategy of providing direct sales and service to our mining customers and builds on our longstanding partnership, while also enhancing our capabilities in underground hard rock mining applications," said Andrew Neilson, president of the ESCO division.
Shares in Weir were down 0.9% at 1,577.50 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Weir Group (WEIR)