Linatex bought by Weir Group

ERJ staff report (DS)

London -- In a stock exchange announcement, UK-based Weir Group said it has bought Malaysian group, Linatex for a total of US$200 million (euro 164 million) in a combination of cash and debt.

Linatex group is a global provider of rubber-based wear-resistant products to the mining and sand & aggregates industries, based in Kuala Lumpur, Malaysia. Weir Group has a significant business in minerals processing. Weir said the Linatex range is strongly complementary.

Linatex provides rubber sheet, process equipment (including pumps, valves and cyclones), hoses, moulded products, screen media and related services, principally for highly-abrasive mining and sand and gravel applications. it has a proprietary technology which generates a liquid rubber that canbe inserted intot process equipment to create a wear-resistant lining on that equipment.

Headquartered in Kuala Lumpur, Linatex's operations comprise core manufacturing facilities in Batu Caves, Kuala Lumpur and Wuxi, China. Regional manufacturing centres are located in (i) Perth and Townsville, Australia; (ii) Alrode, South Africa; (iii) Yateley, UK; (iv) San Bernardo, Chile; and (v) Gallatin, Windfall, Luck and St. Croix Falls, US. There are two service centres in Canada, one in South Africa and four in Australia. In total, Linatex employs approximately 1,000 people.

For the year to 31 December 2009, Linatex generated sales of US$114.8m (2008: US$156.6m) and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of US$13.9m (2008: $19.7m) under IFRS. As at 31 December 2009, gross assets were US$115.4m. In the unaudited management accounts for the four months to April 2010, both sales and EBITDA are ahead of the prior year. Profit before taxation (after interest, depreciation, amortisation and various non-recurring items) in 2009 was $1.0m (2008: $3.2m).

Commenting on the transaction, Weir's chief executive, Keith Cochrane, said, "The acquisition of Linatex creates great opportunities for our Minerals division. By combining Weir's expertise in pumps, valves and cyclones with Linatex's renowned rubber products and branding, we will have a highly complementary and competitive offering to satisfy our customers' demand for leading-edge products and service.

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Press release from London Stock Exchange

Website of Weir Group

Website of Linatex