Scots engineering group Weir has agreed to acquire US valve maker Delta in a $47million deal.
Michigan-based Delta manufactures knife gate valves for the mining, oil sands and other industrial markets and employs 70 people.
The deal will involve an initial consideration of US$37 million payable on completion of the acquisition, made up from $21million in cash (funded from existing bank facilities) and $16million in new equity. Up to a further $10million in cash will be paid over the next 18 months, contingent upon meeting certain profit growth targets.
The acquisition extends Weir Minerals’ leading 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.
Weir chief executive Keith Cochrane, said: “Weir is a global leader in process critical products in the mining and oil sands markets and the acquisition of Delta further strengthens our comprehensive offering to customers. 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.”
Delta vice president Mark Johnson, said: “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.”