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."
