Weir expands presence in mining industries

Industrial engineering group Weir said on Wednesday that it has strengthened its presence in the fast-growing mining markets with three acquisitions worth a combined 55m pounds.

Industrial engineering group Weir said on Wednesday that it has strengthened its presence in the fast-growing mining markets with three acquisitions worth a combined 55m pounds.

Weir said it has acquired the R Wales group of companies, a Canada-based manufacturer of wear resistant linings for the mining, minerals processing and oil sands industries.

At R Wales' facilities in British Columbia and Ontario as well as a US facility in Arizona, the company makes rubber linings for pipes, tanks, chutes and hoses. The acquisition of the firm, which generated over C$30m of revenues last year, is said to be immediately earnings accretive with post-tax returns expected to exceed Weir's cost of capital within the first year of ownership.

Weir also bought the Kuala Lumpur-based Cheong foundry in Malaysia, which supplies castings to a number of industries, including mining and power.

It has also signed an agreement to purchase the plant, equipment and buildings of Xmeco Foundry, a specialist large casting foundry in Port Elizabeth, South Africa.

"The R Wales Group and the Cheong and Xmeco foundries enhance the group's presence in important growth markets," said Weir's Chief Executive Keith Cochrane.

"The Wales Group develops our leading aftermarket offering in the minerals and oil sands sectors, while the Cheong and Xmeco foundries expand our low cost capacity in the fast growing regions of Asia-Pacific and Africa, enabling us to deliver quality products more quickly to our customers."

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021