Metso to add mobile crushing and screening specialist to group

Metso has signed an agreement to acquire McCloskey International, a Canada-based mobile crushing and screening equipment manufacturer with market share in the aggregates

sector, as well as customers in the frac sand and industrial minerals segments.

"The mobile aggregate equipment market is expected to grow by 4-6% annually during 2019-2023, driven by the underlying road construction spend," Metso said. "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 C$420 million payable at closing with an additional profitability-based earn-out consideration of up to C$35 million for the two-year period

after closing, Metso said.

The deal comes on top of Metso's recent acquisitions of Chile-based HighService Service and UK-based KiIn Flames Systems.

Pekka Vauramo, Metso's President and CEO, said the McCloskey acquisition was 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," he said.

Markku Simula, President of the Aggregates Equipment business area in Metso, said customers in aggregates and construction have varying business needs, with this acquisition

supporting the company's expansion plans to "approach customers through multiple complementary channels and offerings to meet their diverse needs".

He added: "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."

In the 12-month period ending September 30, 2018, McCloskey had pro-forma sales of C$464 million ($344 million) and a pro-forma EBITDA margin of 10.3%, with the company's

sales in the fiscal year ending Septembe