Weir complete acquisition of ESCO Corporation
World’s leading provider of ground-engaging tools (GET) acquired for $1,285 million
THE Weir Group plc have completed the acquisition of ESCO Corporation, the world’s leading providers of ground-engaging tools, for an enterprise value of US$1,285 million. Completion follows regulatory clearance for the transaction, which was first announced on 19 April 2018.
Commenting on the acquisition, Weir Group’s chief executive, Jon Stanton, said: ‘We are delighted to formally welcome ESCO to Weir. It is a great brand that is respected throughout the world for its quality, performance and reliability.
‘ESCO’s strength in extraction complements our leadership in the mill circuit, meaning that together we will have a comprehensive offering for mining companies around the world.’
Current ESCO president and chief operating officer Jon Owens will continue to lead the business as it becomes a division of the Weir Group. He will also join Weir’s group executive committee with immediate effect.
Mr Owens said: ‘This is an exciting day for ESCO and all our people. As part of Weir we can create something that is genuinely unique that will help more customers improve their productivity and safety.
‘No other mining equipment provider will be able to offer customers market-leading solutions from extraction to concentration supported by a service centre network that covers every major mining region in the world.’
ESCO have surface mining’s most extensive installed base of lip systems that house short-cycle consumables, such as teeth, shrouds, adaptors, blades and locking systems, with aftermarket sales representing around 90% of ESCO revenues.
ESCO’s extraction products sit upstream from Weir’s traditional strength in slurry-handling equipment with market leading brands including both Warman and GEHO pumps, Cavex hydrocyclones and Linatex rubber products.
ESCO were founded in Portland, Oregon, in 1913 and currently employ around 2,600 people with operations in 19 countries. In 2017 they generated revenues of US$632 million.
Ricardo Garib, division president of Weir Minerals, said the combination would be beneficial to customers around the world: ‘It is great to welcome ESCO to Weir. They are a business we have admired for some time. By working together we’ll be able to give customers easier access to more market-leading products and services. With our global network of more than 100 service centres, that means customers will have more of the superior solutions they require, where and when they need them.’
Joe Weber, vice-president of global sales for Weir’s ESCO division, agreed: ‘As mining markets grow customers are looking for partners they can trust to help them increase productivity and safety, while also lowering their total cost of ownership. That requires a relentless focus on innovation, quality and close customer proximity, which are the hallmarks of the ESCO brand.
‘As part of Weir we’ll benefit from combining some of the world’s leading materials scientists, applications engineers and developing digital technology to deliver increased innovation in the future, ensuring ESCO remain surface mining’s preferred provider of ground-engaging solutions.’