LONDON (dpa-AFX) - UK-based engineering solutions provider Weir Group Plc (WEIR.L) Tuesday said it has agreed to acquire Delta Industrial Valves Inc. for an enterprise value of up to US$47 million.
Delta is an US-based manufacturer of knife gate valves for the mining, oil sands and other industrial markets. Delta employs approximately 70 people and generated EBITDA of approximately US$6.2 million over the last twelve months.
The company said that initial consideration of US$37 million will be payable on completion of the acquisition, US$21m in cash and US$16m in new equity, enabling the owners of Delta to share in the future benefits of the combination. Up to a further US$10m in cash will be paid over the next 18 months, contingent upon the business meeting certain profit growth targets.
According to the company, the transaction will be immediately earnings accretive, and post-tax returns are anticipated to exceed Weir's cost of capital in the first full year of ownership. Completion of the acquisition is expected to occur within the next few days.
Copyright RTT News/dpa-AFX