Last checked at 11 Apr 2022 07:00
Press Release
11 April 2022
Weir acquires Carriere Industrial Supply
The Weir Group announces that it has completed the acquisition of Carriere Industrial Supply Limited (CIS), a premier manufacturer and distributor of highly engineered wear parts and aftermarket service provider to the Canadian mining industry. Its products, which include mining buckets and lip systems, help customers increase productivity through reduced downtime and improved safety. The enterprise value for the transaction was £20m1, subject to customary working capital and net debt adjustments. The consideration was paid in cash at closing.
Transaction highlights:
• | Builds on long relationship with CIS acting as ESCO distributor in Eastern Canada for many years. |
• | Delivers on ESCO's strategy to have direct sales channels in major mining markets. |
• | Increases ESCO's capability in underground hard rock mining applications. |
• | Attractive commodity exposure; CIS has strong presence on gold mines and is located close to deposits of nickel and lithium. |
CIS joins the ESCO Division. The acquisition will be earnings and margin accretive in year one with returns expected to exceed the Group's cost of capital in the first full year of ownership.
Commenting, Andrew Neilson, President of Weir's ESCO Division said:
"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."
Notes:
1. Exchange rate of £1 = CAD$1.6399 at closing in London on 8 April 2022.
Enquiries: | |
Investors: Edward Pears | +44 (0) 141 308 3725 |
Media: Citigate Dewe Rogerson: | +44 (0) 207 638 9571 |
Kevin Smith | Weir@citigatedewerogerson.com |
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 enables 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.11,000 employees operating in over 60 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).
About Carriere Industrial Supply Limited
Founded in 1964, CIS is a leader in providing cost effective engineered wear products, services and solutions to the mining industry, with a focus on underground mining processes. Its product lines include surface and underground mining buckets, haul truck bodies, wear liners and lip systems. The Company is headquartered in Greater Sudbury, Ontario and operates with over 135 employees with a growing branch location in Quebec. Find out more at www.carriereindustrial.com.