Deals
Weir to Buy Esco to Add Mining Equipment as Company Revamps
- Purchase of U.S. company has enterprise value of $1.29 billion
- Scottish manufacturer to also sell its flow-control division
Weir is betting on two key areas with improving prospects, mining and oil.
Photographer: Matthew Lloyd/Bloomberg
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Weir Group Plc plans to acquire U.S. competitor Esco Corp. as the U.K. maker of industrial pumps strengthens its focus on the mining industry in a $1.29 billion deal including debt.
Weir rose to the highest in almost three months on Thursday after the Glasgow-based manufacturer said the purchase will produce $30 million in cost savings and add to earnings in its first year. The company will also sell its Flow Control division to narrow its business line-up.