Weir Group has made an indicative proposal to acquire all of the share capital of ASE-listed Ludowici, valuing it at approximately A$294 million on a cash and debt free basis. Weir’s proposal is subject to the satisfactory completion of due diligence and may or may not lead to an offer. The price represents a 10% premium to a previous proposal made by FLSmidth. Based in Brisbane, Australia, Ludowici is a leading provider of vibrating screens, centrifuges and complementary wear resistant products and services to the mining industry with a strong focus on coal applications. In addition to Australia, which accounts for approximately 65% of revenues, Ludowici has a presence in other major mining locations including South Africa, South America, India and China. The company employs approximately 1,000 people globally, including around 450 in Australia.

Commenting on the proposal, Weir Chief Executive, Keith Cochrane, said: “Ludowici is a well known and respected brand in the coal processing sector. The potential acquisition would extend Weir’s offering in minerals processing and expand our exposure to the attractive and fast growing coal sector where Weir is relatively unrepresented. As a part of the global Weir Minerals business, we would look to accelerate the growth of Ludowici, consistent with Weir’s 2010 acquisition of Linatex.” Sydney based Rob Brown, Weir’s Regional Managing Director, said “With our own strong presence in the Australian mining equipment sector, Weir has followed the development of Ludowici and is aware of the value embedded in the strong Ludowici brand, developed over 154 years. The combination of Weir’s existing Australian operations with Ludowici represents a compelling opportunity for both companies, their customers and their shareholders.”