Weir buys US-based Delta Industrial Valves for up to $47m
Weir Group said on Tuesday that it has agreed to acquire US-based Delta Industrial Valves for an enterprise value of up to $47m.
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An initial consideration of $37m will be payable on completion of the deal, $21m in cash funded from existing banking facilities and $16m in new equity, enabling the owners of Delta to share in the future benefits of the combination. Up to a further $10m in cash will be paid over the next 18 months, contingent upon the business meeting certain profit growth targets.
Delta, which is based in Michigan and employs around 70 people, is a manufacturer of knife gate valves for the mining, oil sands and other industrial markets. It has generated around $6.2m in earnings before interest, tax, depreciation and amortisation over the last 12 months.
Weir chief executive Keith Cochrane said: “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."