MARKET TALK: Weir Acquisition Good Fit, Earnings Accretive

14th Jun 2010 10:49

0949 GMT [Dow Jones] Weir Group's (WEIR.LN) acquisition of Malaysia-based Linatex fits well within the group, says Arden Partners. Arden notes the company's trading update, which it reckons is very positive. "Not only are they seeing better spares business at SPM where management now expect sales to be up 25% on previous target but more importantly they are also seeing original equipment orders starting to come through in all three divisions, which bodes well for growth into 2H '10 and onwards." Meanwhile, Arbuthnot says the acquisition looks strategically sound and will add to earnings. Both brokerages have the stock at buy. Shares +10.3% at 1048p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 14, 2010 05:49 ET (09:49 GMT)