Metso has signed an agreement to acquire Canadian mobile crushing and screening equipment manufacturer McCloskey International, expanding Metso’s offering in the aggregates industry globally and strengthening its customer reach.
With this acquisition Metso will be able to better take part in the attractive growth of mobile products within the aggregates industry. The mobile aggregate equipment market is expected to grow by 4 to 6% annually during 2019-2023, driven by the underlying road construction spend.
“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,” said Pekka Vauramo, Metso’s president and CEO.
“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,” added Markku Simula, president of the Aggregates Equipment business area in Metso. “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.”
In the 12-month period ending Sept. 30, 2018, McCloskey had pro forma sales of CAD $464 million and a pro forma EBITDA margin of 10.3%.The company’s strong track record of profitable growth over the past several years is expected to continue in 2019.
“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,” said Paschal McCloskey, founder, president and CEO of McCloskey.
The acquisition is subject to customary closing conditions, including anti-trust approvals. Closing is expected to take place during the fourth quarter of this year.