Weir to acquire Trio in US$220mn deal

Weir Group has entered into an agreement to acquire 669 Trio Engineered Products, a Chinese-American manufacturer of crushing and separation equipment for the mining and aggregates markets, for US$220 million.

The acquisition will, in part, allow 2836 Weir Minerals, part of Weir Group, to sell its aggregates and sand product range through Trio’s well established sales channels in North America and China. The sand and aggregate markets accounted for 56% of Trio revenues in 2013.

The multi-million dollar deal will, says the Weir Group, also utilise Weir Minerals’ global platform and relationships across mining markets to accelerate Trio’s original equipment revenue growth; and capture a greater proportion of the aftermarket opportunity from the installed base of Trio equipment. Trio has limited service presence outside of China.

Trio is based in Shanghai, China, where it has two manufacturing plants. The Company also has facilities in the United States. In 2014, the company is expected to generate revenues of $120 million, with operating profit margins broadly in-line with Weir Minerals.

Trio is being acquired from majority owner Navis Capital and the Company's management team. Trio's three founders have agreed to remain with the Company following acquisition.

Completion of the acquisition is subject to the fulfilment of certain conditions and is anticipated to take place before the end of October 2014.