Weir Group buys US valves firm for up to $47m

Delta manufactures valves used for mining, oil sands and other industrial markets in North America

The Weir Group has acquire Delta Industrial Valves, a US manufacturer of knife gate valves for the mining, oil sands and other industrial markets, in deal worth up to $47 million. 

Michigan-based Delta, which was founded in 1987, Delta manufactures a range of American Society of Mechanical Engineers-class 150, 300 and 600 knife gate valves, with a growing international presence.

Delta’s products are capable of cutting, shearing, and closing against solids, while still producing a zero leakage tight shut-off. The company employs about 70 people and generated earnings before interest, tax, depreciation, and amortisation of about $6.2 million in the past 12 months. 

An 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, if the business meets certain  growth targets.    

The acquisition extends Weir Minerals’ leading 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. 

Keith Cochrane, chief executive of the Weir Group, said: “Weir is a global leader in process critical products in the mining and oil sands markets and the acquisition of Delta further strengthens our comprehensive offering to customers.

"Delta’s strong brand and reputation, together with Weir’s global capability, mean we will be able to offer our customers new ways to increase efficiency at a time when the industry is focused on reducing costs and increasing productivity.” 

Weir Group has a presence in more than 70 countries, with more than 15,000 people around the world working in three divisions: Minerals; Oil & Gas; and Power & Industrial.