Metso to acquire McCloskey

With the acquisition, Metso anticipates it will be able to better take part in the attractive growth of mobile products within the aggregate industry. Photo by Kevin Yanik

Metso signed an agreement to acquire McCloskey International, the Canadian mobile crushing and screening equipment manufacturer.

The value of the transaction is about $316 million, payable at closing with an additional profitability-based earn-out consideration of up to $26 million. The acquisition is subject to customary closing conditions, including anti-trust approvals. Closing is expected to take place during the fourth quarter this year.

Metso expects the acquisition to expand its offering in the aggregate industry around the world, as well as strengthen its customer reach to general contractors.

“This acquisition is in line with Metso’s profitable growth strategy,” says Pekka Vauramo, Metso president and CEO. “It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining focused minerals portfolio well.”

According to Metso’s Markku Simula, customers in aggregate and construction have varying business needs.

“Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel,” says Simula, president of the aggregate equipment business area at Metso. “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.”

In a 12-month period ending last September, McCloskey had sales of about $350 million and earnings before interest, tax, depreciation and amortization margin of 10.3 percent. McCloskey’s sales in the fiscal year ending this September are expected to exceed $376 million.

McCloskey has about 900 employees in Canada, the United States and Northern Ireland.

“We are proud of the growth achieved in a competitive market,” says Paschal McCloskey, founder, president and CEO of McCloskey. “I know 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.”

The deal with Metso is not the only transaction McCloskey has been involved in over the last year. Last August, McCloskey announced it had acquired Lippmann-Milwaukee, the privately held company that manufactures aggregate crushing equipment for processing applications.