Engineering group Weir has agreed to acquire mining products manufacturer Linatex for £138 million.
Engineering group Weir has agreed to acquire mining products manufacturer Linatex for $200 million (£138 million).
The deal involves an initial cash consideration of $172.5 million funded from existing bank facilities, in addition to which Weir anticipates assuming $27.5 million of debts and liabilities.
Weir’s chief executive, Keith Cochrane, comments: ‘By combining Weir’s expertise in pumps, valves and cyclones with Linatex’s renowned rubber products and branding, we will have a highly complementary and competitive offering to satisfy our customers’ demand for leading-edge products and service.
‘Linatex’s established manufacturing capability, particularly in Malaysia and China, and its extensive customer network, provides an excellent platform for growth.’
The deal, which is subject to regulatory approvals, is expected to close in the third quarter of 2010.
Kuala Lumpur-based Linatex produces rubber based products for the mining and aggregates industries. The company has manufacturing facilities around the globe, and employs around 1,000 people.
For the year to December 2009, Linatex generated sales of $114.8 million with net profits of $13.9 million, and its gross assets were $115.4 million.
Glasgow-based Weir manufactures products for the mining, oil and gas and power industries, and employs around 9,000 people across the 40 countries it operates in.