Weir expands North America presence with $150M acquisition of Townley

Weir Group announced Wednesday it has signed a binding agreement to acquire US-based engineering product maker Townley, as well as its foundry business, for an enterprise value of £111m ($150m).Weir says this acquisition will help strengthen the group’s market channels and manufacturing footprint in North America, including in the attractive phosphate market, a key mineral in fertilizers.The deal will be financed from Weir’s existing debt facilities and has no impact on its previous debt guidance for fiscal years 2025 and 2026, the Glasgow-based firm said.The transaction is expected to be completed in the third quarter of 2025, subject to the customary US antitrust approvals.North American expansionFounded in 1963, Townley provides mining wear and abrasion solutions with an extensive product range including slurry pumps, dredge pumps, cast foundry products, valves, urethane parts, hoses and rubber linings. Its operations are based in Ocala, within the phosphate mining region of north-central Florida.Townley’s strategic locations, according to Weir, will enhance the firm’s existing North American channels to market and provide access to new customers. The in-region manufacturing capabilities of Townley will also enable Weir to drive further localization and lead-time reduction within North America, it added.Commenting on the agreement, Weir CEO Jon Stanton Weir said: “The acquisition of Townley will significantly enhance our geographic presence in North America, enabling us to serve customers in the region more effectively and sustainably.“It enhances our domestic manufacturing platform and strengthens Weir’s position in the attractive market for phosphate, an important mineral in the fertilizers that are needed to support population growth.”Post-completion, Townley’s business will be integrated into the North American region within Weir’s Minerals division. The deal is expected to be EPS accretive in the first full year of ownership, with ROIC (return on invested capital) expected to exceed WACC (weighted average cost of capital) in 2028, Weir said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com