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Finland's Metso buys Canada's McCloskey for $317 million

Christian Fernsby |
Metso has signed an agreement to acquire McCloskey International, a Canadian mobile crushing and screening equipment manufacturer.

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The mobile aggregate equipment market is expected to grow around 5% 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.

The enterprise value of the transaction is CAD 420 million (EUR 279 million) payable at closing with an additional profitability-based earn-out consideration of up to CAD 35 million (EUR 23 million) for the two-year period after closing.

The transaction is expected to be positive for Metso’s earnings per share in 2020.

McCloskey will be reported in Metso’s Minerals segment.

To ensure financing for the acquisition, Metso has agreed on a bilateral loan from Nordea Bank Abp.

The loan has a maturity of two years and includes an option to extend the maturity by one year.

The acquisition is subject to customary closing conditions, including anti-trust approvals.

Closing is expected to take place during Q4 2019.

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