LONDON: Pumps group Weir has agreed to buy Malaysia-based Linatex, which makes pump seals and other rubber products for mining, to expand its footprint in emerging economies.
The British company, which makes valves and pumps for the oil, mining and power industries, will pay US$172.5 million (RM564.08 million) in cash.
"Linatex's established manufacturing capability, particularly in Malaysia and China, and its extensive customer network, provides an excellent platform for growth," said Weir's chief executive Keith Cochrane.
Weir said on Monday, June 14 that the deal, under which it would assume debt of about US$27.5 million, would add to earnings from 2011.
In a separate trading update, Weir said it had seen a pick-up in original equipment orders in the nine weeks to June 4, and it now expected adjusted pre-tax profit for the first half to be about ''140 million (RM670.85 million), about ''20 million ahead of analysts' expectations.
The company also said aftermarket orders had continued to exceed its expectations, and it expected profit for the second half to be significantly ahead of the same period a year ago, measured in constant currency. ' Reuters
The British company, which makes valves and pumps for the oil, mining and power industries, will pay US$172.5 million (RM564.08 million) in cash.
"Linatex's established manufacturing capability, particularly in Malaysia and China, and its extensive customer network, provides an excellent platform for growth," said Weir's chief executive Keith Cochrane.
Weir said on Monday, June 14 that the deal, under which it would assume debt of about US$27.5 million, would add to earnings from 2011.
In a separate trading update, Weir said it had seen a pick-up in original equipment orders in the nine weeks to June 4, and it now expected adjusted pre-tax profit for the first half to be about ''140 million (RM670.85 million), about ''20 million ahead of analysts' expectations.
The company also said aftermarket orders had continued to exceed its expectations, and it expected profit for the second half to be significantly ahead of the same period a year ago, measured in constant currency. ' Reuters
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