ESCO Corporation folds into Weir Group
Weir Group has completed the acquisition of ESCO Corporation, it announced on Thursday morning, effective as of the announcement.
FTSE 250
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17:09 25/04/24
FTSE 350
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17:09 25/04/24
FTSE All-Share
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Industrial Engineering
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Weir Group
1,967.00p
16:40 25/04/24
The FTSE 250 firm’s update followed its confirmation of an agreement on 19 April to acquire ESCO, which it described as “the world's leading provider” of ground engaging tools for surface mining and infrastructure, for an estimated enterprise value of $1.29bn.
“I am delighted that ESCO has formally become part of the Weir Group,” said chief executive officer Jon Stanton.
“ESCO brings a strong global leadership position and adds another premium brand to our portfolio of market-leading products and services.”
Stanton said that, as mining markets continued to grow, customers were focused on increasing production sustainably and efficiently.
“ESCO's premier position in surface mining complements our established leadership in materials processing, meaning together the group has a unique range of mission critical solutions from extraction to concentration, built on proprietary technology, superior wear life and supported by an unrivalled service network.”
Weir said ESCO would operate as a new division of the group, and would be reported as a separate segment alongside minerals, and oil and gas.
Following the previous announcement that the group would initiate a process to sell its flow control division, the results of that division would now be reported as discontinued operations, the board added.
ESCO would be led by division president Jon Owens, formerly president and chief operating officer of ESCO Corporation, who first joined the business in 1986.
Owens would join Weir's Group executive, and become a person discharging managerial responsibilities (PDMR) with immediate effect.
Cal Collins, former chairman and chief executive officer of ESCO Corporation, would join the Weir Group board as a non-executive director and PDMR, also with immediate effect.
Additionally, further to Weir’s announcement on Wednesday and following completion of the acquisition, the company also announced the admission of 16,779,861 new ordinary shares to the premium listing segment of the Official List, and to trading on the main market of the London Stock Exchange as of Thursday morning.