Scotland-based engineering firm Weir Group has signed a deal with Kuala Lumpur-based private equity firm Navis Capital to purchase Trio Engineered Products, a Chinese-American mining services firm, for $220m.
The acquisition will allow Weir to expand its mining services business.
In addition, Weir will be able to provide complete product and service offerings to existing mining customers and use Weir Minerals’s platform to enhance business.
Weir Group CEO Keith Cochrane said: “This agreement will allow Weir Minerals to build upon its successful comminution strategy.
“We’ll use our group’s unrivalled global capability to promote Trio’s range of complementary products, extending our addressable market and offering our mining customers a wider range of highly engineered equipment and services.
“Trio’s established manufacturing capability and its scale and presence in aggregates markets also provides a further platform for growth.”
Weir will pay $237.5m to Navis Capital, including $17.5m in net cash balances held by Trio.
Trio Engineered Products CEO Mike Burke said: “This agreement is strategically compelling for Trio, allowing the company to leverage Weir’s market-leading service centre network to accelerate growth and better serve our customers’ aftermarket needs on a truly global basis.”
The acquisition, which is subject to the fulfilment of certain conditions, is expected to close before the end of October.