The Weir Group PLC : Acquisition

                       The Weir Group PLC : Acquisition

The Weir Group PLC

20 February 2013


Acquisition of the R Wales group of companies and Cheong foundry; agreement to
                            acquire Xmeco foundry

The Weir Group PLC ("Weir") has extended its leading presence and capabilities
in global  mining and  oil sands  markets with  the acquisition  of a  leading 
Canadian based manufacturer  of wear resistant  linings. In addition,  Weir's 
best cost supply chain  strategy has been advanced  with the acquisition of  a 
Malaysian foundry  and agreement  to  acquire a  heavy  bay foundry  in  South 
Africa. Both facilities  are well  placed to  serve the  fast growing  mining 
markets of Africa and Asia-Pacific. The combined consideration for the  three 
acquisitions will be £55m and funded from existing bank facilities.

R Wales

Weir has acquired the R Wales group of companies ("R Wales"), a Canadian based
manufacturer of specialist rubber and  wear resistant linings for the  mining, 
minerals processing  and oil  sands industries.  The acquisition,  which  was 
completed on  15  February  2013,  is  expected  to  be  immediately  earnings 
accretive with post  tax returns  expected to  exceed Weir's  cost of  capital 
within the first full year of ownership.

With Canadian facilities in British Columbia and Ontario and a US facility  in 
Arizona, R  Wales designs  and manufactures  rubber lining  for pipes,  tanks, 
chutes and  hoses  and  specialises  in custom  rubber  and  urethane  moulded 
products, including slurry pump wear parts and mill liners. In 2012, the Wales
Group generated revenues in  excess of C$30m.  The acquisition extends  Weir's 
aftermarket position in the production and servicing of a wide range of rubber
lined wear components for the North American oil sands and mining sectors  and 
complements the existing customer base and product portfolio.

Foundry strategy developments

Weir has also advanced  its global foundry  supply chain strategy,  completing 
the acquisition of the business and assets of the Cheong foundry in  Malaysia, 
on 6 February 2013. Based near Kuala Lumpur, the facility supplies castings to
a number of industries,  including mining and  power. The acquisition  enables 
Weir to  add foundry  capacity  to serve  the  Asia-Pacific region  with  high 
quality products from a best cost sourcing region. In addition, agreement  has 
been reached to acquire  the plant, equipment and  buildings of Xmeco  Foundry 
Pty. Ltd, a specialist large casting foundry in Port Elizabeth, South  Africa. 
Xmeco expands  Weir's  capacity  and  capability  on  the  African  continent, 
enabling the full product range to be locally produced. Subject to  regulatory 
approval, completion is expected in May 2013.

Weir Chief Executive, Keith Cochrane, said: "The R Wales Group and the  Cheong 
and Xmeco foundries enhance the Group's presence in important growth  markets. 
The Wales Group develops our leading aftermarket offering in the minerals  and 
oil sands sectors, while  the Cheong and Xmeco  foundries expand our low  cost 
capacity in the fast growing regions  of Asia-Pacific and Africa, enabling  us 
to deliver quality products more quickly to our customers."

Contact details: The Weir Group PLC
Andrew  Neilson,  Head  of  Corporate  Affairs  & Tel: + 44 141 308 3750
Jonathan Milne, Communications Manager            Tel: + 44 141 308 3781/ + 44
                                                  7713 789536
The Maitland Consultancy: Peter Ogden             Tel: + 44 207 379 5151

About Weir Minerals

Weir Minerals  is  the global  leader  in  the provision  of  slurry  handling 
equipment  and  associated   aftermarket  support  for   abrasive  high   wear 
applications used  in  the  mining  and  oil  sands  markets.  The  division's 
leadership position  is reinforced  by materials  development carried  out  at 
research centres worldwide and a leading presence in key mining markets,  with 
around 100 service facilities providing  rapid customer support. The  division 
achieved revenues of more than £1.3bn in 2011.

About The Weir Group PLC

Weir, a  FTSE  100 company  founded  in  1871 and  headquartered  in  Glasgow, 
Scotland, is a global provider of  engineering solutions to the minerals,  oil 
and gas and power sectors. Our commitment to engineering excellence,  research 
and customer focus extends equipment  wear life and operational capability  in 
some of the world's most challenging environments.

Weir is committed to going where our customers go, with a worldwide network of
around 200 manufacturing facilities  and service centres.  The business has  a 
presence in more than  70 countries, with over  14,000 staff around the  world 
working in three divisions; Minerals, Oil & Gas and Power & Industrial. Weir's
customer base includes the world's  largest mining houses, major oil  services 
businesses and nuclear and conventional power generation companies.

Annual revenues were more than £2.2 billion  in 2011, of which more than  half 
came from the provision of services and aftermarket support. Emerging  markets 
contributed around one third of overall Group revenues.

See for further information.


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Source: The Weir Group PLC via Thomson Reuters ONE
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