Weir has entered into an agreement to purchase US ground engaging tools (GET) specialist ESCO for $US1.28 billion ($1.67 billion).<\/p>\n
The transaction has been approved by Weir\u2019s board of directors and is not subject to shareholder approval.<\/p>\n
As part of the acquisition, Weir will gain access to ESCO\u2019s 10 manufacturing facilities, six foundries and 22 service and supply centres, in 19 countries.<\/span><\/p>\n Weir hopes it can leverage ESCO strong position in the GET sector to prioritise upstream growth opportunities in the minerals and oil and gas sectors; around 40 per cent of large primary mover machines across the globe utilise ESCO product.<\/p>\n ESCO chairman and chief executive officer Cal Collins called the merger exciting, stating: \u201c[It] combined two premium brands and positions us to better serve our customers around the world. The merger of ESCO into Weir is also a great fit, both culturally and strategically.\u201d<\/p>\n GET parts include\u00a0the likes of teeth (usually for shovels and drag lines), blades, shrouds, locking systems and other edge wear\u00a0parts. ESCO brands include the Nemisys lip system and Ultralok mining tooth system, which Weir intends to bring to new territories via its extensive global network.<\/p>\n Weir Group chief executive officer Jon Stanton called ESCO a \u201cleading global brand\u201d that would allow Weir to pursue new revenue opportunities.<\/p>\n \u201cTogether, Weir Minerals and ESCO will create a unique customer proposition as the premium provider of mission critical surface mining solutions from extraction to concentration, built on proprietary technology superior wear life and supported by an unrivalled service network.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"