Metso has signed an agreement to acquire McCloskey International, a Canadian mobile crushing and screening equipment manufacturer, to expand Metso’s offering in the aggregates industry globally and to strengthen the customer reach especially to general contractor customers.
The mobile aggregate equipment market is forecast to grow by 4-6% annually during 2019-2023, driven by the underlying road construction spend. With this acquisition, Metso will be able to better take part in the attractive growth of mobile products within the aggregates industry.
“This acquisition is in line with Metso’s profitable growth strategy. It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining focused Minerals portfolio well,” said Pekka Vauramo, Metso’s president and CEO.
“Customers in aggregates and construction have varying business needs. This acquisition supports our expansion plans to approach customers through multiple complementary channels and offerings to meet their diverse needs,” added Markku Simula, president of the Aggregates Equipment business area at Metso.
“Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel. Synergies are apart from sourcing mainly revenue related, resulting from the wider offering available to both channels as well as additional crusher equipment, service and consumable sales,” continued Mr Simula.
McCloskey has approximately 900 employees in Canada, the US and Northern Ireland. In the 12-month period ending 30 September 2018, the company had pro forma sales of C$464 million (€308 million) and a pro forma EBITDA margin of 10.3%. Its strong track record of profitable growth over the past several years is expected to continue in 2019. The company’s sales in the fiscal year ending 30 September 2019 are projected to exceed C$500 million (€330 million).
“We are proud of the growth achieved in a competitive market. I know that joining Metso is the right move for all our customers, employees, dealers and business partners. The combination of our unique focus on products and people and Metso’s global resources will help create even better solutions for our customers,” said Paschal McCloskey, founder, president and CEO of McCloskey.
Metso said McCloskey will be reported in its Minerals segment. The acquisition is expected to be finalised during the fourth quarter of 2019.