The Weir Group to Acquire Delta Industrial Valves

The Weir Group PLC is to acquire Delta Industrial Valves Inc. for up to $47 million. Based in Niles, Mich., Delta generated EBITDA of approximately $6.2 million over the last 12 months. The company makes knife gate valves for the mining, oil sands and other industrial markets. Initial consideration of $37 million will be payable on completion of the acquisition, $21 million in cash and $16 million in new equity, enabling the owners of Delta to share in the future benefits of the combination. Up to a further $10 million in cash will be paid over the next 18 months, contingent upon meeting certain profit goals.  The acquisition extends Weir Minerals’ presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife-gate valves, for use in the transportation of slurry.