Metso hailed the deal as expanding its involvement in the aggregates industry, which it expects to grow by 4-6% annually between 2019 and 2023 thanks to spending on road construction.
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.
Metso said it is to pay CA$420mn (US$316.6mn) for the company, with a further payment of up to CA$35mn dependant on profitability within the next two years. The deal is expected to close in the fourth quarter of 2019, subject to the usual conditions.
“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, President and CEO of Metso.
