Metso is to acquire McCloskey International, a Canadian mobile crushing and screening equipment manufacturer, to expand its aggregates offering and customer reach.
Pekka Vauramo, Metso’s president and CEO, says: “This acquisition is in line with Metso’s profitable growth strategy. It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining focused Minerals portfolio well.”
The enterprise value of the transaction is CAN$420 million payable at closing with additional profitability-based earn-out consideration of up to CAN$35m for the two-year period after closing. As part of the deal, Metso has agreed on a bilateral loan from Nordea Bank Abp to ensure financing for the acquisition.
Markku Simula, president of the aggregates equipment business area in Metso, says: “Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel. Synergies are apart from sourcing mainly revenue related, resulting from the wider offering available to both channels as well as additional crusher equipment, service and consumable sales.”
The acquisition, which is subject to customary closing conditions, is expected to close during the fourth quarter of 2019.