Metso has signed an agreement to acquire McCloskey International, a Canadian mobile crushing and screening equipment manufacturer, to expand Metso’s offering in the aggregates industry globally and to strengthen the customer reach especially to general contractor customers.
The mobile aggregate equipment market is expected to grow by 4-6% annually during 2019-2023, driven by the underlying road construction spend. With this acquisition Metso will be able to better take part in the attractive growth of mobile products within the aggregates industry.
“This acquisition is in line with Metso’s profitable growth strategy. It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining focused Minerals portfolio well,” says Pekka Vauramo, Metso’s President and CEO.
“Customers in aggregates and construction have varying business needs. This acquisition supports our expansion plans to approach customers through multiple complementary channels and offerings to meet their diverse needs”, adds Markku Simula, President of the Aggregates Equipment business area in Metso. “Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel. Synergies are apart from sourcing mainly revenue related, resulting from the wider offering available to both channels as well as additional crusher equipment, service and consumable sales,” he continues.
In the 12-month period ending September 30, 2018, McCloskey had pro forma sales of CAD 464 million (EUR 308 million) and a pro forma EBITDA margin of 10.3%. The company’s strong track record of profitable growth over the past several years is expected to continue in 2019. The company’s sales in the fiscal year ending September 30, 2019, are expected to exceed CAD 500 million (EUR 330 million). McCloskey has approx. 900 employees in Canada, the United States and Northern Ireland.
“We are proud of the growth achieved in a competitive market. I know that joining Metso is the right move for all our customers, employees, dealers and business partners. The combination of our unique focus on products and people and Metso’s global resources will help create even better solutions for our customers,” says Paschal McCloskey, Founder, President and CEO of McCloskey.
The enterprise value of the transaction is CAD 420 million (EUR 279 million) payable at closing with an additional profitability-based earn-out consideration of up to CAD 35 million (EUR 23 million) for the two-year period after closing. The transaction is expected to be positive for Metso’s earnings per share in 2020. McCloskey will be reported in Metso’s Minerals segment.
To ensure financing for the acquisition, Metso has agreed on a bilateral loan from Nordea Bank Abp. The loan has a maturity of two years and includes an option to extend the maturity by one year.
The acquisition is subject to customary closing conditions, including anti-trust approvals. Closing is expected to take place during Q4 2019.
Keywords: No Keys
Tags: No tags
Caterpillar is adding a new platform MineStar Edge to augment the Cat® MineStar™ Solutions suite of technologies and to align with the way many mining operations manage their businesses. Edge creates an operational ecosystem for mining companies. Rather than having data in individual silos Edge brings visibility to the entire mining operation and enables managers to see how activities early in the process impact those further down the value chain. MineStar Edge also leverages cloud computing and recent technology advancements such as data fusion machine learning and artificial intelligence—so it will continue to grow as it collects data identi...
Willi Liebherr and Sophie Albrecht at the ceremony to hand over the LR 13000 to Russian company Titan-2. Russian company Titan-2 buys the most powerful crawler crane in the world Family shareholders Willi Liebherr and Sophie Albrecht hand over the LR 13000 Titan-2 places its trust in the enormous lifting capacities of the LR 13000 A ceremony was held in the evening sunshine last autumn – Liebherr family shareholders and members of the Mobile Cranes Division Board Willi Liebherr and Sophie Albrecht handed over a Liebherr LR 13000 crawler crane to Russian company Titan-2. Christoph Kleiner Managing Director of Liebherr-Werk Ehingen GmbH was also...
Hyster Europe has introduced a new Platform Stacker the latest addition to its recently launched range of uncomplicated trucks suited to general-purpose operations. The Hyster® S1.5UT S Platform Stacker for lifting up to 1.5 tonnes provides a straight-forward and affordable solution for those transporting stock over short distances such as in warehouses and manufacturing operations. The truck is the latest addition to the recently launched Hyster® UT series which offers a choice of cost-effective counterbalance IC lift trucks pallet trucks and pallet stackers. With a fit-for-purpose foldable platform the new Hyster® S1.5UT S helps to enhance o...