The Weir Group will be acquiring Delta Industrial Valves, a US-based manufacturer of knife gate valves for the mining, oil sands and other industrial markets, for an enterprise value of up to USD 47M. Based in Niles, Michigan, Delta employs approximately 70 people and generated EBITDA of approximately USD 6.2M over the last twelve months.
Initial consideration of USD 37M will be payable on completion of the acquisition, USD 21M in cash (funded from existing bank facilities) and USD 16M in new equity, enabling the owners of Delta to share in the future benefits of the combination. Up to a further USD 10M in cash will be paid over the next 18 months, contingent upon the business meeting certain profit growth targets.
The acquisition extends Weir Minerals’ leading presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife-gate valves, for use in the transportation of slurry. The acquisition is expected to be completed within the next few days.