Metso to acquire McCloskey International
11.06.19 · Engineering News
Finnish machinery company METSO have signed an agreement to acquire mobile crushing and screening equipment manufacturers McCloskey International.
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries.
Metso say the acquisition means they will be able to better take part in the growth of mobile products within the sector as mobile aggregates equipment market expected to grow by 4–6% annually during 2019–2023.
Markku Simula, President of the Aggregates Equipment business area in Metso, said: “Customers in aggregates and construction have varying business needs. This acquisition supports our expansion plans to approach customers through multiple complementary channels and offerings to meet their diverse needs. 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.”
“We are proud of the growth achieved in a competitive market. I know that joining Metso is the right move for all our customers, employees, dealers and business partners. The combination of our unique focus on products and people and Metso’s global resources will help create even better solutions for our customers,” says Paschal McCloskey, Founder, President and CEO of McCloskey.
The enterprise value of the transaction is C$420 million (€279 million) payable at closing with an additional profitability-based earn-out consideration of up to C$35 million (€23 million) for the two-year period after closing. McCloskey, who have approximately 900 employees in Canada, the US and Northern Ireland, will be reported in Metso’s Minerals segment.