REG - Weir Group PLC - Weir acquires Carriere Industrial Supply

WeirAnnouncement

11/04/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220411:nRSK8736Ha&default-theme=true

RNS Number : 8736H  Weir Group PLC  11 April 2022

Press Release

11 April 2022

 

Weir acquires Carriere Industrial Supply

 

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 £20m(1), 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."

Notes:

1. Exchange rate of £1 = CAD$1.6399 at closing in London on 8 April 2022.

 Enquiries:
 Investors: Edward Pears         +44 (0) 141 308 3725
 Media: Citigate Dewe Rogerson:  +44 (0) 207 638 9571
 Kevin Smith                     Weir@citigatedewerogerson.com (mailto:Weir@citigatedewerogerson.com)

 

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
enables 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.11,000 employees
operating in over 60 countries with a presence in every major mining region of
the world. Find out more at 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).

 

About Carriere Industrial Supply Limited

Founded in 1964, CIS is a leader in providing cost effective engineered wear
products, services and solutions to the mining industry, with a focus on
underground mining processes. Its product lines include surface and
underground mining buckets, haul truck bodies, wear liners and lip systems.
The Company is headquartered in Greater Sudbury, Ontario and operates with
over 135 employees with a growing branch location in Quebec. Find out more at
www.carriereindustrial.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQFLFLLSLIILIF