Weir Group, a prominent player in mining technology, has signed a definitive agreement to acquire Townley Engineering and Manufacturing and Townley Foundry & Machine, collectively known as Townley, for £111m ($150m).

This acquisition is set to enhance Weir's manufacturing capabilities and market presence in North America, especially in the vital phosphate industry.

Townley, established in 1963, is renowned for its mining wear and abrasion solutions, offering a comprehensive range of products including slurry pumps, dredge pumps and cast foundry items.

With operations in Ocala, Florida, at the heart of the phosphate mining region, Townley also boasts a wide service network across the US and partnerships in Canada and Central America.

The strategic locations of Townley's operations are expected to augment Weir's market channels in North America and provide access to new customer bases. The in-region manufacturing will enable Weir to further localise production and reduce lead times, aligning with customer demands.

The transaction is set for completion in the third quarter of 2025, pending customary US antitrust approvals.

Weir CEO Jon Stanton said: “The acquisition of Townley will significantly enhance our geographic presence in North America, enabling us to serve customers in the region more effectively and sustainably. It enhances our domestic manufacturing platform and strengthens Weir’s position in the attractive market for phosphate, an important mineral in the fertilisers that are needed to support population growth. 

“Townley is a highly complementary addition to Weir. We are looking forward to welcoming the team of more than 360 colleagues to Weir and are excited by the opportunity to combine our expertise to enhance productivity and sustainability for our customers.”

Post-acquisition, Townley will be integrated into Weir's minerals division within the North American region.

The acquisition is anticipated to be earnings-per-share accretive in its first full year and is expected to yield a return on invested capital that surpasses the weighted average cost of capital by 2028.

The deal will be financed through existing debt facilities, with no impact on Weir's net debt forecast for the fiscal years 2025 and 2026.

Recently, Weir Group secured contracts worth £40m from Codelco for a sustainable tailings transport solution in Chile's Atacama region.