Toronto, ON — Kinecor, a Toronto-based distributor of industrial products, has agreed to acquire the Process Equipment Division of Weir Canada Inc. for $25.4 million subject to post-closing adjustments. Approval of the acquisition by the federal Canadian Competition Bureau was achieved Sept. 10, 2008.
Weir Canada Inc., a division of Weir Services, is a source of engineered industrial, instrumentation and process control products, pumps and engineering and marine services. It consists of five operating units: Weir Engineering Services, Weir Global Parts Solutions, Weir Canada Pumps, Weir Process Equipment and Weir Marine Engineering. The company was launched in Montreal in 1897 as the Peacock Brothers and began marketing Weir pump products made in Glasgow, Scotland, in 1910. The process equipment division was created in 2002.
Weir Process Equipment, previously known as Peacock Inc., is a distributor of pumps, process controls and instrumentation, filtration products and material handling equipment to the oil and gas, power generation, mining and infrastructure sectors across Canada. These products are complimentary to Kinecor’s current offerings and the acquisition significantly enhances Kinecor’s position in the process equipment market in Canada, said Kinecor president Gord Duncan.
The acquired business will be combined with Kinecor’s process equipment operation under the Peacock name.
For the 12-month period ended June 30, 2008, Weir Process Equipment had adjusted annual sales of approximately $50 million. It is expected that over time the combined business will be enhanced through revenue growth by leveraging Kinecor’s extensive branch network and customer base.
“We are excited to welcome the Peacock employees and product lines into the Kinecor family,” said Duncan. “Peacock is a successful industrial distribution operation in Canada and this acquisition will substantially strengthen our market presence in the process equipment segment. We expect to be able to grow the business by leveraging our existing branch network and customer base.”
Kinecor provides bearings and power transmission products, hydraulics components and systems, and process equipment to Canadian industry. Kinecor operates through 55 branches across Canada. The acquisition of Peacock will add eight more branches. The new Peacock Division of Kinecor will be managed by Simon Bennington.
Kinecor is a business unit of Wajax Income Fund. Wajax is a diversified income fund that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, industrial components and power systems, through a network of over 100 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.
Commenting on the transaction, Glasgow-based Weir Group PLC chief executive Mark Selway said: “This transaction is consistent with our strategy to realize value from our non-core assets. We will use the cash proceeds to continue to develop Weir’s activities in our chosen specialist higher-margin businesses.” Weir Group, which was founded in Glasgow in 1871, employs 9,000 people worldwide.
For further information, visit www.kinecor.com.