Weir completes US acquisition

Weir Group, the Glasgowbased engineering heavyweight, has completed its $1 billion-plus (£760 million) acquisition of Us-based Esco Corporation.

The move follows the news in April that the Scots firm was buying the equipment parts maker, as it looks to bolster its mining arm.

Esco, based in Portland, Oregon, makes parts for surface mining and the construction industry, including groundmoving equipment. Weir said the deal placed an enterprise value of about $1.3bn on the business.

Jon Stanton, Weir Group’s chief executive, said: “I am delighted that Esco has formally become part of the Weir Group.

“Esco brings a strong global leadership position and adds another premium brand to our portfolio of market-leading products and services.

“As mining markets continue to grow customers are focused on increasing production sustainably and efficiently.”

Esco will operate as a new division of Weir and will be reported as a separate segment alongside minerals and oil and gas.

The newly acquired business will be led by division president Jon Owens, formerly president and chief operating officer of Esco Corp, who joined the business in 1986.

In April, Weir also announced that it planned to offload its flow-control division, which designs process pumps and valves for the power, oil and gas industries. The results of that division will now be reported as discontinued operations.

Weir, which was founded in 1871, has also placed almost 16.8 million shares with institutional investors following the acquisition.

In March, the group, which employs about 18,000 people in more than 70 countries, reported annual pre-tax profits up 47 per cent to £250m in 2017 from £170m in 2016, on strong revenues of £2.35bn.