CORRECT: Weir Group Buys Malaysia-Based Linatex For $200M

14th Jun 2010 07:45

("Weir Group Buys Malaysia-Based Linatex For $200M >WEIR.LN," published at 0619 GMT, the final two paragraphs were merged, with some words missing. The correct version follows:) LONDON (Dow Jones)--Weir Group PLC (WEIR.LN), a British engineering company, said Monday it has agreed to acquire the Linatex group of companies, a global provider of wear-resistant products to the mining and sand & aggregates industries, based in Kuala Lumpur, Malaysia for $172.5 million (GBP119.0 million) in cash on completion and funded from existing bank facilities. MAIN FACTS: -Weir anticipates assuming $27.5 million (GBP19.0 million) of net indebtedness and similar liabilities. -Completion is conditional on regulatory approvals and, subject to such approvals, is expected to take place in the third quarter of 2010. -Acquisition is expected to be accretive from 2011 for Weir and its returns are expected to exceed Weir's cost of capital from the second full year of ownership. -For the year to Dec. 31, 2009, Linatex generated sales of $114.8 million (2008: $156.6 million) and adjusted earnings before interest, tax, depreciation and amortization of $13.9 million (2008: $19.7 million) under IFRS. -As at Dec. 31 2009, gross assets were U.S.$115.4 million. -In the unaudited management accounts for the four months to April 2010, both sales and EBITDA are ahead of the prior year. Profit before tax (after interest, depreciation, amortization and various non-recurring items) in 2009 was $1.0 million (2008: $3.2 million). -Cost saving initiatives envisaged by Weir are, within the second year of ownership, expected to give rise to incremental annual profits of $5 million-$10 million. -Shares closed Friday 950.5 pence valuing the company at GBP2.0 billion. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires June 14, 2010 02:45 ET (06:45 GMT)