Indicative proposal to acquire Ludowici
Weir confirms indicative proposal to acquire Australian
mining equipment supplier Ludowici.
The Weir Group PLC ("Weir") confirms it has made an indicative
proposal to acquire all of the share capital of Australian
Securities Exchange listed Ludowici Limited ("Ludowici"), by way of
scheme of arrangement, at an indicative offer price of
A$7.92[1] per Ludowici share,
corresponding to an estimated enterprise value of approximately
A$294 million[2] (£200
million[3]) on a cash and debt
free basis. Weir's indicative proposal is subject to the
satisfactory completion of due diligence and may or may not lead to
an offer. The indicative offer price represents a 10% premium
to the indicative proposal made by FLSmidth & Co. A/S
("FLSmidth").
The cash consideration would be funded from existing facilities
and any acquisition will be in line with Weir's published
acquisition criteria.
Based in Brisbane, Australia, Ludowici is a leading provider of
vibrating screens, centrifuges and complementary wear resistant
products and services to the mining industry with a strong focus on
coal applications. In addition to Australia, which accounts for
approximately 65% of revenues, Ludowici has a presence in other
major mining locations including South Africa, South America, India
and China. The company employs approximately 1,000 people globally,
including around 450 in Australia.
Commenting on the indicative proposal, Weir Chief Executive,
Keith Cochrane, said: "Ludowici is a well known and respected
brand in the coal processing sector. The potential
acquisition would extend Weir's offering in minerals processing and
expand our exposure to the attractive and fast growing coal sector
where Weir is relatively unrepresented. As a part of the global
Weir Minerals business, we would look to accelerate the growth of
Ludowici, consistent with Weir's 2010 acquisition of
Linatex."
Sydney based Rob Brown, Weir's Regional Managing Director, said
"With our own strong presence in the Australian mining
equipment sector, Weir has followed the development of Ludowici and
is aware of the value embedded in the strong Ludowici brand,
developed over 154 years. The combination of Weir's existing
Australian operations with Ludowici represents a compelling
opportunity for both companies, their customers and their
shareholders."
Ludowici announced on 23 January 2012, that it had entered into
a Process Agreement with FLSmidth at A$7.20 per Ludowici share.
Weir is being advised by UBS and Freehills.
Weir will update its shareholders on material developments, as
appropriate.
Contact details: The Weir Group PLC
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Vicky Ferrier, Head of IR and Communications
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Tel: + 44 141 302 3782
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Jonathan Milne, Communications Manager
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Tel: + 44 141 308 3781 / + 44 771 378
9536
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The Maitland Consultancy
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Tel: + 44 207 379 5151
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Peter Ogden/Rowan Brown
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Cosway Australia
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Tel: + 61 2 9929 8344
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Ben Wilson
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Tel: + 61 407 966 083
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Fleur Jouault
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Tel: + 61 405 669
632
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About Ludowici Limited
Ludowici was established in 1858 to provide equipment to the
coal mining markets of Queensland Australia. The business
manufactures and services a range of minerals processing equipment,
including vibrating screens and feeders, centrifuges, classifiers
and associated wear products including wear linings, screens media,
seals and rubber products. Headquartered in Brisbane, Australia,
Ludowici has over 20 locations globally including manufacturing
facilities in Australia, India, China, Chile and the United
States. In the year to 30 June 2011, Ludowici reported
revenues of A$211.9 million.
See www.ludowici.com.au for further information.
About Weir in Australia
Weir Minerals Australia employs around 1,300 people across 27
manufacturing, sales and service facilities across Australia. The
business has revenues of approximately A$500 million, having grown
by over 85% in the past five years including the acquisitions of
Multiflo and Linatex.
About The Weir Group PLC
Weir, a FTSE 100 company founded in 1871 and headquartered in
Glasgow, Scotland, is a global provider of engineering solutions to
the minerals, oil and gas and power sectors. Our commitment to
engineering excellence, research and customer focus extends
equipment wear life and operational capability in some of the
world's most challenging environments.
Weir is committed to going where our customers go, with a
worldwide network of more than 140 manufacturing facilities and
service centres. The business has a presence in more than 70
countries, with over 13,000 staff around the world working in three
divisions; Minerals, Oil & Gas and Power & Industrial.
Weir's customer base includes the world's largest mining houses,
major oil services businesses and nuclear and conventional power
generation companies.
Annual revenues were more than £1.65 billion in 2010, of which
more than half came from the provision of services and aftermarket
support. Emerging markets contributed 39% of overall Group
revenues.
Weir Minerals is the global leader in supply and service of
slurry handling equipment to the minerals processing
industry. The division also produces a wide range of
associated mill circuit and mine dewatering products, including
cyclones, spools and wear resistant liners. In 2010 the
division, which has over 7,000 staff, reported revenues of £901
million.
See http://www.weir.co.uk/
for further information
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