Acquisition
THE WEIR GROUP PLC
10 February 2012
Weir confirms indicative proposal to acquire Australian mining equipment supplier Ludowici
The cash consideration would be funded from existing facilities and any acquisition will be in line with Weir's published acquisition criteria.
Based in Brisbane, Australia, Ludowici is a leading provider of vibrating screens, centrifuges and complementary wear resistant products and services to the mining industry with a strong focus on coal applications. In addition to Australia, which accounts for approximately 65% of revenues, Ludowici has a presence in other major mining locations including South Africa, South America, India and China. The company employs approximately 1,000 people globally, including around 450 in Australia.
Commenting on the indicative proposal, Weir Chief Executive, Keith Cochrane, said: "Ludowici is a well known and respected brand in the coal processing sector.The potential acquisition would extend Weir's offering in minerals processing and expand our exposure to the attractive and fast growing coal sector where Weir is relatively unrepresented. As a part of the global Weir Minerals business, we would look to accelerate the growth of Ludowici, consistent with Weir's 2010 acquisition of Linatex."
Sydney based Rob Brown, Weir's Regional Managing Director, said "With our own strong presence in the Australian mining equipment sector, Weir has followed the development of Ludowici and is aware of the value embedded in the strong Ludowici brand, developed over 154 years. The combination of Weir's existing Australian operations with Ludowici represents a compelling opportunity for both companies, their customers and their shareholders."
Ludowici announced on 23 January 2012, that it had entered into a Process Agreement with FLSmidth at A$7.20 per Ludowici share.
Weir is being advised by UBS and Freehills.
Weir will update its shareholders on material developments, as appropriate.
| Contact details: The Weir Group PLC | |
| Vicky Ferrier, Head of IR and Communications | Tel: + 44 141 302 3782 |
| Jonathan Milne, Communications Manager | Tel: + 44 141 308 3781 / + 44 771 378 9536 |
The Maitland Consultancy | Tel: + 44 207 379 5151 |
Peter Ogden/Rowan Brown | |
Cosway Australia | Tel: + 61 2 9929 8344 |
Ben Wilson | Tel: + 61 407 966 083 |
Fleur Jouault | Tel: + 61 405 669 632 |
About Ludowici Limited
Ludowici was established in 1858 to provide equipment to the coal mining markets of Queensland Australia. The business manufactures and services a range of minerals processing equipment, including vibrating screens and feeders, centrifuges, classifiers and associated wear products including wear linings, screens media, seals and rubber products. Headquartered in Brisbane, Australia, Ludowici has over 20 locations globally including manufacturing facilities in Australia, India, China, Chile and the United States. In the year to 30 June 2011, Ludowici reported revenues of A$211.9 million.
See www.ludowici.com.au for further information.
About Weir in Australia
Weir Minerals Australia employs around 1,300 people across 27 manufacturing, sales and service facilities across Australia. The business has revenues of approximately A$500 million, having grown by over 85% in the past five years including the acquisitions of Multiflo and Linatex.
About The Weir Group PLC
Weir, a FTSE 100 company founded in 1871 and headquartered in Glasgow, Scotland, is a global provider of engineering solutions to the minerals, oil and gas and power sectors. Our commitment to engineering excellence, research and customer focus extends equipment wear life and operational capability in some of the world's most challenging environments.
Weir is committed to going where our customers go, with a worldwide network of more than 140 manufacturing facilities and service centres. The business has a presence in more than 70 countries, with over 13,000 staff around the world working in three divisions; Minerals, Oil & Gas and Power & Industrial. Weir's customer base includes the world's largest mining houses, major oil services businesses and nuclear and conventional power generation companies.
Annual revenues were more than £1.65 billion in 2010, of which more than half came from the provision of services and aftermarket support. Emerging markets contributed 39% of overall Group revenues.
Weir Minerals is the global leader in supply and service of slurry handling equipment to the minerals processing industry. The division also produces a wide range of associated mill circuit and mine dewatering products, including cyclones, spools and wear resistant liners. In 2010 the division, which has over 7,000 staff, reported revenues of £901 million.
See www.weir.co.uk for further information
[1] This indicative price would be reduced by any dividends or distributions paid, announced or declared by Ludowici prior to completion.
[2] Enterprise value based on Ludowici's current fully diluted share capital and net debt as at 30 June 2011, adjusted for the estimated impact of the Meshcape acquisition.
[3] Exchange rate of A$1.00 = £0.68 on 10 February 2012.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: The Weir Group PLC via Thomson Reuters ONE
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