Weir acquires Delta Valves
The Weir Group has agreed to acquire Delta Industrial Valves, a US-based manufacturer of knife gate valves for the mining, oil sands and other industrial markets, for an enterprise value of up to $47 million (€42.3 million).
Based in Niles, Michigan, Delta employs approximately 70 people and generated EBITDA of approximately $6.2 million (€5.5 million) over the last twelve months.
The acquisition extends Weir Minerals’ presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife-gate valves, for use in the transportation of slurry.
The transaction will be immediately earnings accretive, and post-tax returns (before integration costs) are anticipated to exceed Weir’s cost of capital in the first full year of ownership.
Completion of the acquisition is expected to occur within the next few days.
Keith Cochrane, chief executive of the Weir Group, says: ‘The acquisition of Delta further strengthens our comprehensive offering to customers. Delta’s strong brand and reputation, together with Weir’s global capability, mean we will be able to offer our customers new ways to increase efficiency at a time when the industry is focused on reducing costs and increasing productivity.’
‘We are delighted that Delta will be joining one of the world’s leading engineering businesses. Delta will be able to take advantage of Weir’s presence in more than 70 countries, bringing our valves technology to customers all over the world. We see significant opportunities ahead in what remain long-term growth markets,’ says Mark Johnson, vice president of Delta.