On November 1, WEARX and Metso Corporation finalised an agreement that will bring the two companies together. The combined strengths of both companies and knowledge of their people is expected to bring even more value to the mineral processing and material transfer market sectors. The deal will also be covered in depth in the IM December 2017 Liners and Wear Parts article.
WEARX is a privately owned wear solutions provider with a range of its own products. The company addresses its customer’s needs by implementing the right technologies to deliver wear protection solutions designed to exceed plant availability goals. The company’s offer includes; wear liners, rubber & ceramic lining, skirting, chutes & bulk material handling equipment. Services include; design, engineering, site services & project management.
On the morning of November 2, WEARX’s CEO and Metso’s Senior Vice President – Australian Market areas addressed WEARX staff to explain the change at the company’s head office in Thornton, located on Australia’s east coast, 25 km north-west of Newcastle. Commenting on the reasoning behind the deal, WEARX CEO, Gary Newman said, “Over the last few years, we have worked hard to develop WEARX into an agile service provider that delivers high value solutions to our customers. Our board and shareholders knew that at some stage we would need the backing of a much bigger company to unlock our full potential. With the funding of the next phase of our company’s growth in mind, we decided that a full trade sale to a large, likeminded company was the best way to continue the evolution of our business. There were several interested parties, but when it came down to making our decision as to which company we wanted to move forward with, our key considerations were; cultural fit and clear synergies between the two companies. I’m very pleased to say, that we found an ideal fit in Metso. Joining forces with Metso is a historic step in our company’s development,” he said.
Metso’s Senior Vice President for the Australian Market Areas – Ross Wotherspoon says that there is an excellent cultural fit between the two companies. “From our very first meetings with WEARX executives, I was impressed by their great culture which is very similar to ours.” This move is part of Metso’s growth strategy, which includes both organic growth, as well as growth through acquisition.
Wotherspoon says that over the last seven years the company has evolved its business through several powerful initiatives that have helped to improve service levels. “We have agressively expanded our services footprint and committed to regularly measure and actively improve the satisfaction of both our customers and staff. In parallel to these initiatives, we have developed an acquisition strategy designed to broaden our offering and bring even more value to our customers. As for synergies, combining the strengths of our companies and knowledge of our people will allow us to bring even more value to our clients in the mineral processing and material transfer market sectors. We want to make sure that the transition goes smoothly, especially for staff and customers. The retention of WEARX’s agility and entrepreneurial spirit is a fundamental success factor,” he said.
The companies have assembled a dedicated integration team which will now work on all aspects of the integration. It is expected that the group has around six months of intense work ahead.