Scotland-based company takes over Niles’ industrial valves company
Published 8:55 am Monday, July 20, 2015
Delta Industrial Valves is under new ownership.
Last week, The Weir Group, an engineering business based in Glasgow, Scotland, announced that it had agreed to acquire Delta Industrial Valves, a leading US-based manufacturer of knife-gate valves for the mining, oil sands and other industrial markets, for an enterprise value of up to $47 million.
Based in Niles, Delta employs approximately 70 people and generated approximately $6.2 million over the last 12 months.
Raymond Buchanan, head of communications for The Weir Group, said there are no plans to move Delta from its current location.
“Weir is delighted that Delta has joined our group and that we can both work together to make our customers more efficient,” he said. “Weir will conduct an environmental, health and safety audit, as we do with all newly acquired businesses, to see if there are any enhancements we can make to the Niles facility.”
When asked how the acquisition would affect current employees and if there would be any changes in the current workforce, Buchanan said, “Weir bought Delta because it is a good company with great technology and great people. We aim to use that knowledge to improve Weir’s valve offering to customers around the world. We’ll be focused on growing Delta’s business and that means offering opportunities to all of Delta’s current employees.”
A press release sent by The Weir Group said initial consideration of $37 million will be payable on completion of the acquisition, $21 million in cash (funded from existing bank facilities) and $16 million in new equity, enabling the owners of Delta to share in the future benefits of the combination.
Up to a further $10 million in cash will be paid over the next 18 months, contingent upon the business meeting certain profit growth targets.
Buchanan said the acquisition extends Weir Minerals’ presence in mining and oil sands markets by expanding the division’s portfolio of valve products, particularly knife-gate valves, for use in the transportation of slurry.
Weir has a presence in more than 70 countries with more than 15,000 people around the world working in three divisions: minerals, oil/gas and power/industrial.
“Weir is a global leader in process critical products in the mining and oil sands markets and the acquisition of Delta further strengthens our comprehensive offering to customers,” said Keith Cochrane, CEO of Weir, in a press release. “Delta’s strong brand and reputation, together with Weir’s global capability, mean we will be able to offer our customers new ways to increase efficiency at a time when the industry is focused on reducing costs and
Buchanan said Delta would continue to manufacture the same products and that it would retain the same brand name.
Delta’s vice president, Mark Johnson, declined to talk about the acquisition but this statement was attributed to him in the press release:
“We are delighted that Delta will be joining one of the world’s leading engineering businesses,” he said. “Delta will be able to take advantage of Weir’s presence in more than 70 countries, bringing our valves technology to customers all over the world. We see significant opportunities ahead in what remain long-term growth markets.”
Buchanan said one of Delta’s previous owners, Keith Stelter, has expressed his wish to pursue new interests after helping to integrate Delta into Weir Minerals.
Buchanan said Johnson would remain with the business and, as part of the wider Weir Minerals North America management team, he’ll focus on growing Delta’s business.
Delta Industrial Valves is located at 2101 Industrial Dr., Niles.