The Weir Group says it has completed the acquisition of Carriere Industrial Supply Limited (CIS), a manufacturer and distributor of highly engineered wear parts and aftermarket service provider to Canada’s mining industry.
Its products, which include mining buckets and lip systems, help customers increase productivity through reduced downtime and improved safety, Weir says. The enterprise value for the transaction, which will see CIS join the ESCO Division, is £20 million ($26 million), subject to customary working capital and net debt adjustments.
The transaction builds on long relationship with CIS, acting as ESCO distributor in Eastern Canada for many years, Weir said, while delivering on ESCO’s strategy to have direct sales channels in major mining markets. It also increases ESCO’s capability in underground hard-rock mining applications, with CIS having a strong presence in gold and being located close to deposits of nickel and lithium.
According to Weir, the acquisition will be earnings- and margin-accretive in year one with returns expected to exceed the group’s cost of capital in the first full year of ownership.
Andrew Neilson, President of Weir’s ESCO Division, said: “The acquisition of CIS aligns with our strategy of providing direct sales and service to our mining customers and builds on our long-standing partnership, while also enhancing our capabilities in underground hard-rock mining applications.”