Weir to buy Linatex, orders surge 25%

14th Jun 2010 07:38

Engineering group Weir confirmed it will acquire Kuala Lumpur based Linatex for £138m as it expands its global reach.Linatex, which provides wear-resistant products to the mining and sand industries, fits into its strategy of growing its global capability, Weir said. Around £119m will be payable in cash on completion and funded from existing bank facilities. In addition Weir expects to assume around £19m of net debt and similar liabilities.In a separate statement Weir said trading for the nine weeks to 4 June has been stronger than expected, with order output for the 22-week period up 25%. The group now expects first-half adjusted pre-tax profit of around £140m, while second half pre-tax profit is expected to be significantly ahead of the same time a year ago.