UK-based engineering company Weir Group has announced it is to acquire crushing and screening equipment manufacturer Trio Engineered Products for US$ 220 million.
Weir makes pumping equipment used in the processing of minerals in mines. It said the acquisition of Trio would build upon its market position by enabling it to offer more products and services to existing customers and take advantage of Trio’s cost-effective manufacturing. The move also comes following Weir’s thwarted attempts to acquire Metso earlier this year.
Trio is based in Shanghai, China, where it has two manufacturing plants, and the company also has facilities in the US. According to Weir, 31% of Trio’s revenues last year were generated in the US, primarily in the aggregates sector. A further 25% came from China, predominantly the mining segment. In 2014, Trio is expected to generate revenues of some US$ 120 million.
Trio is being acquired from majority owner Navis Capital and the Company's management team. Weir said Trio's three founders have agreed to remain with the company following acquisition, which is expected to reach completion this month.
Weir Group CEO Keith Cochrane said, “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."