A leading provider of mining equipment and services around the world has entered into an agreement to acquire a US based mining equipment maker.
Weir Group, a UK based company that delivers equipment and technology products to mining, oil and gas, power and industrial markets all over the world, has entered into an agreement to acquire ESCO Corporation in a deal worth $1.2 billion.
ESCO Corporation, based in Portland, Oregon, that delivers mining products through manufacturing facilities, foundries and service and supply centres in 19 countries around the world. Weir will look to leverage the company’s North American portfolio, which represents 52% of its entire revenue, which compares with Weir’s current 22% revenue from the region.
“Leveraging Weir's global network will significantly increase the number of direct customer relationships available to ESCO,” said Weir in a statement. “The ESCO business will also provide strong support for Weir’s growing comminution offering, with an extensive footprint and dealer network in North America representing a clear opportunity for Weir’s crusher portfolio.”
Following the completion of the acquisition, Weir intends to run ESCO as a stand-alone business for the remainder of 2018.
ESCO Chairman and CEO Cal Collins said: "The foundation of our business for more than 100 years has been delivering value-added proprietary solutions through a proud tradition of quality and customer-driven innovation. This merger is exciting for ESCO as it combines 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."