UK-based engineering firm Weir Group, a supplier of pumps and valves for the mining and energy industries, has signed an agreement to acquire US mining equipment parts manufacturer Esco for an equity value of $1.05bn.
Esco is a provider of ground engaging tools (GET) for surface mining and construction applications.
The company possesses ten manufacturing facilities and six foundries, as well as 22 service and supply centres in 19 countries.
The acquisition is anticipated to complement Weir’s growing comminution offering.
Weir will also have an opportunity to bolster its crusher portfolio by leveraging an extensive footprint and dealer network across North America.
Additionally, the acquisition will help expedite the company’s portfolio development through the expansion of Minerals aftermarket opportunities.
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Weir Group CEO Jon Stanton said: “Together, Weir Minerals and Esco will create a unique customer proposition as the premium provider of mission-critical surface mining solutions from extraction to concentration, built on proprietary technology, superior wear life and supported by an unrivalled service network.”
Esco’s GET portfolio comprises components such as teeth, shrouds, adaptors, blades and locking systems that are installed on the lip systems of mission-critical mining equipment.
Esco is expected operate as a stand-alone business for the remainder of the year once the deal is completed.
Additionally, Weir is contemplating the possible sale of its Flow Control division in a bid to focus on growth opportunities within its minerals and oil and gas businesses.
The acquisition is scheduled to be closed in the third quarter of this year.