Scotland-based Weir Group PLC announced in mid-October that it had entered into an agreement to acquire Trio Engineered Products, a manufacturer of crushing and separation equipment for the mining and aggregates markets, for about $220 million.
Weir is a major global supplier of pumping equipment for mill circuits that separate rock from ore. The acquisition of Trio will build upon Weir’s recent entry into applications for other segments of mill processes. Trio is based in Shanghai, China, where it has two manufacturing plants, and also has facilities in the U.S. In 2013, 31% of its revenues were generated in North America, primarily in the growing aggregates sector; 25% were in China, mainly serving the domestic mining industry; the balance was broadly spread across Australia, South America, Africa and Europe. In 2014, Trio is expected to generate revenues of $120 million with operating profit margins broadly in-line with Weir’s Minerals division.
Weir will acquire 100% of Trio Engineered Products (Hong Kong) for $133 million with the balance of the consideration relating to the acquisition of 100% of Trio Engineered Products in the U.S.
Trio is being acquired from majority owner Navis Capital and the company’s management team.