- 11 December 2007 -

Weir acquires African pumps business

The Weir Group has acquired the CH Warman Pump Group (CHW), a pump supplier to the African mining and minerals processing industry.

CHW provides wear-resistant pumps, spare parts, and related services, principally for highly-abrasive mining, minerals processing and other industrial applications. Its operations comprise a principal manufacturing facility and head office located near Johannesburg, South Africa, together with seven branches throughout South Africa and Ghana, Zambia, Namibia, Botswana and Zimbabwe. In total, the CHW business employs some 430 people

The previous owners, Research and Development Pty Limited and CH Warman Holdings Pty Limited, sold the company for US$231m (£113m) payable in cash on completion. Weir anticipates assuming approximately US$ 2m (£1m) of net indebtedness.

Weir says that CHW is a well-established business with a high-level of customer loyalty and a significant presence in the higher-growth mining markets throughout Africa. The acquisition will help the company develop its relationship with international mining companies and improve CHW’s product offering.

“This is an exciting deal for our Minerals division […] It’s a perfectly-aligned acquisition right in our sweet spot of high-margin, high-wear applications in high-growth specialist markets,” said Weir’s chief executive, Mark Selway.

www.weir.co.uk

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