Scotland-based The Weir Group PLC has agreed to acquire Delta Industrial Valves Inc., a Niles, MI-based manufacturer of knife gate valves for the mining, oil sands and other industrial markets, for an enterprise value of up to $47 million. Delta employs approximately 70 people and generated EBITDA of approximately $6.2 million over the last 12 months.
The acquisition extends Weir Minerals’ presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife-gate valves, for use in the transportation of slurry. The transaction will be immediately earnings accretive, and post-tax returns (before integration costs) are anticipated to exceed Weir’s cost of capital in the first full year of ownership. Completion of the acquisition is expected to occur within the next few days.
Keith Cochrane, Chief Executive of the Weir Group, said, “Weir is a global leader in process critical products in the mining and oil sands markets and the acquisition of Delta further strengthens our comprehensive offering to customers. Delta’s strong brand and reputation, together with Weir’s global capability, mean we will be able to offer our customers new ways to increase efficiency at a time when the industry is focused on reducing costs and increasing productivity.”
Mark Johnson, Vice-President of Delta, said, “We are delighted that Delta will be joining one of the world’s leading engineering businesses. Delta will be able to take advantage of Weir’s presence in more than 70 countries, bringing our valves technology to customers all over the world. We see significant opportunities ahead in what remain long-term growth markets."
Based in Glasgow, Scotland, Weir designs, manufactures and services innovative solutions which make its minerals, oil and gas and power customers more efficient.
Annual revenues were more than $3.69 billion in 2014, of which almost two thirds came from the provision of services and aftermarket support.
Founded in 1987, Delta manufactures a range of ASME class 150, 300 and 600 knife gate valves for the mining, oil sands and other industrial markets in North America, with a growing international presence. Delta’s products are capable of cutting, shearing, and closing against solids while still producing a zero leakage tight shut-off, and include the world’s only Safety Integrity Level certified knife gate valve series.
Delta operates from an 82,000 square foot facility in Niles, Michigan.