Scottish engineering firm the Weir Group has closed a $1.285bn acquisition of Esco, a US-based provider of ground engaging tools (GET) for surface mining and infrastructure.
The acquisition agreement was signed in April this year in an effort to create a mining services provider with mission-critical solutions from extraction to concentration.
The deal is expected to complement Weir’s growing comminution projects, while also allowing the company to strengthen its crusher portfolio.
Weir, which makes pumps, wellheads and valves, will have access to Esco’s portfolio of ten manufacturing facilities and six foundries, as well as 22 service and supply centres in 19 countries.
Esco will operate as a new division of the Weir Group and will be led by Jon Owens, who previously worked as Esco’s president and chief operating officer.
Weir Group CEO Jon Stanton said: “Esco brings a strong global leadership position and adds another premium brand to our portfolio of market-leading products and services.
“Esco’s premier position in surface mining complements our established leadership in materials processing, meaning together the group has a unique range of mission-critical solutions from extraction to concentration, built on proprietary technology, superior wear life and supported by an unrivalled service network.”
The total consideration for the transaction included 59% in cash and the remaining 41% in new Weir shares to Esco shareholders.
Established in 1871, Weir operates in mining and upstream oil and gas markets with facilities in more than 70 countries.
At the time of signing the deal in April, the company also unveiled its plans to divest its Flow Control business and focus on Minerals and Oil & Gas.