LONDON (ShareCast) - (Sharecast News) - Mining technology firm Weir Group said on Wednesday that it has agreed to buy US-based Townley, a manufacturer of high-quality engineered products for minerals processing, for around £111m.
It said the deal will strengthen its market channels and manufacturing footprint in North America, including in the attractive phosphate market, a key mineral in modern fertilisers, essential for global food security and accessibility.

Founded in 1963, Townley provides mining wear and abrasion solutions with an extensive product range including slurry pumps, dredge pumps, cast foundry products, valves, urethane parts, hoses and rubber linings.

The company's operations - which include a foundry, and urethane and rubber products manufacturing - are based in Ocala, within the phosphate mining region of north central Florida.

These operations also serve Townley's branch service network across the US, as well as distributor partners in Canada and Central America.

Weir said Townley's footprint of strategic locations will enhance its existing North American channels to market and provide access to new customers.

Chief executive Jon Stanton said: "The acquisition of Townley will significantly enhance our geographic presence in North America, enabling us to serve customers in the region more effectively and sustainably. It enhances our domestic manufacturing platform and strengthens Weir's position in the attractive market for phosphate, an important mineral in the fertilisers that are needed to support population growth.

"Townley is a highly complementary addition to Weir. We are looking forward to welcoming the team of more than 360 colleagues to Weir and are excited by the opportunity to combine our expertise to enhance productivity and sustainability for our customers."

The deal, which is due to complete in the third quarter, is expected to be accretive to earnings per share in the first full year of ownership.

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