Metso, a Helsinki, Finland-based manufacturer of equipment for recycling and other industries, has signed an agreement to acquire McCloskey International, a Canadian mobile crushing and screening equipment manufacturer. Metso said it made the deal to expand its offerings in the global aggregates industry.
Metso said the mobile aggregate equipment market is expected to grow by 4 to 6 percent annually during 2019 to 2023, driven by road construction.
Metso said the enterprise value of the transaction is $420 million (Canadian) payable at closing with an additional profitability-based earn-out consideration of up to $35 million for the two-year period after closing. Closing is expected to take place during the fourth quarter of 2019.
“We are proud of the growth achieved in a competitive market,” said Paschal McCloskey, founder, president and CEO of McCloskey. “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.”
Metso said that in the 12-month period ending September 30, 2018, McCloskey had pro forma sales of $464 million (Canadian). The company’s strong track record of profitable growth over the past several years is expected to continue in 2019, Metso said, adding that McCloskey’s sales in the fiscal year ending September 30, 2019, are expected to exceed $500 million. McCloskey has about 900 employees in Canada, the U.S. and Northern Ireland.
“Customers in aggregates and construction have varying business needs,” said Markku Simula, president of Metso’s aggregates equipment business area. “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.”
Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 3.2 billion in 2018.Follow us on social media: