RCS - Weir Group PLC - Weir's Townley acquisition strengthens NA presence

WeirAnnouncement

18/06/2025 12:00

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RNS Number : 4030N  Weir Group PLC  18 June 2025

18 June 2025

Press Release

Weir to acquire Townley, strengthening manufacturing and phosphate market
presence in North America

Weir, a global leader in mining technology, has entered into a binding
agreement to acquire US-based businesses Townley Engineering and Manufacturing
Co., Inc. and Townley Foundry & Machine Co., Inc. (combined "Townley"), a
leading manufacturer of high-quality engineered products for minerals
processing, for a sterling equivalent(1) enterprise value of £111m (US$150m).
The acquisition will strengthen Weir's market channels and manufacturing
footprint in North America, including in the attractive phosphate market, a
key mineral in modern fertilisers, essential for global food security and
accessibility.

An established name with complementary portfolio and North American footprint

Founded in 1963, Townley is a leading provider of mining wear and abrasion
solutions with an extensive product range including slurry pumps, dredge
pumps, cast foundry products, valves, urethane parts, hoses and rubber
linings. Townley's operations, which include a foundry, and urethane and
rubber products manufacturing, are based in Ocala, within the phosphate mining
region of north central Florida. These operations also serve Townley's
extensive branch service network across the United States, as well as
distributor partners in Canada and Central America.

Townley's footprint of strategic locations will enhance Weir's existing North
American channels to market and provide access to new customers. Its in-region
manufacturing capabilities will enable Weir to drive further localisation and
lead-time reduction within North America, aligning strongly with customer
needs.

Commenting on the agreement, Jon Stanton, Chief Executive of Weir 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."

The transaction is expected to complete in Q3 2025, subject to the customary
US antitrust approvals. Post-completion, the business will be integrated into
the North American region within our Minerals division. The deal is expected
to be EPS accretive in the first full year of ownership(2) with ROIC expected
to exceed WACC in 2028. The deal will be financed from existing debt
facilities and has no impact to Weir's previous net debt guidance for fiscal
years 2025 and 2026(3).

Notes:

1.             Transaction spot rate of 1.35

2.             Weir's financial reporting year ended December 2026

3.             Net debt to EBITDA is expected to be below 2.0x at
December 2025 and below 1.5x by year end 2026

Disclaimer

This information includes 'forward-looking statements'. All statements other
than statements of historical fact included in this presentation, including,
without limitation, those regarding The Weir Group PLC's (the "Group")
financial position, business strategy, plans (including development plans and
objectives relating to the Group's products and services) and objectives of
management for future operations, are forward-looking statements. These
statements contain the words "anticipate", "believe", "intend", "estimate",
"expect" and words of similar meaning. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of the Group to be
materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-looking
statements are based on numerous assumptions regarding the Group's present and
future business strategies and the environment in which the Group will operate
in the future. These forward-looking statements speak only as at the date of
this document. The Group expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Group's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based. Past business and financial performance cannot be relied
on as an indication of future performance.

 

About The Weir Group PLC

Founded in 1871, The Weir Group PLC is one of the world's leading engineering
businesses with a purpose to make its mining and infrastructure customers'
operations more sustainable and efficient. Weir's highly engineered technology
and digital solutions enable critical resources to be produced using less
energy, water and waste while reducing customers' total cost of ownership. The
Group is ideally positioned to benefit from structural trends that support
long-term demand for its technology including the need for more essential
metals to support economic development and carbon transition. The Group has
c.12,000 employees operating in over 50 countries with a presence in every
major mining region of the world. Find out more at www.global.weir
(http://www.global.weir/) .

Weir's ordinary shares trade on the London Stock Exchange (ticker: WEIR LN)
and its American Depositary Receipts trade over-the-counter in the USA
(ticker: WEGRY).

 Enquiries:
 Investors: Philip Carlisle  +44 (0)141 308 3617
 Media: Sally Jones          +44 (0)141 308 3666
 CDR: Claire de Groot        +44 (0) 207 638 9571

                             weir@cdrconsultancy.com

 

 

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