Metso Outotec to acquire Tesab
11 April 2022
Sustainable technology specialist Metso Outotec has signed an agreement to acquire Tesab Engineering, a Northern Ireland-based company offering mobile crushing equipment for aggregates applications including recycling.
While not disclosing the sum involved in the acquisition, Metso Outotec said the deal would have “no material impact on its financials”.
Closing is expected to take place before the end of June.
This is the Finnish company’s second major acquisition in the crushing and screening sector in three years, following its purchase of Canada-based McCloskey International in 2019.
Tesab, whose product portfolio includes mobile jaw, impact and cone crushers, mobile screens, scalpers and stackers, will continue as an independent brand within Metso Outotec and manage its own distribution network. Its turnover for 2021 was around €30 million (US$32.7 million).
“We are very glad to welcome Tesab to Metso Outotec,” said Markku Simula, president of the aggregates business area.
“I am convinced that we can further develop their business. We intend to increase Tesab’s global reach by appointing new distributors and strengthening Tesab’s presence in new markets.”
Metso Outotec’s recently published annual report says orders across the company’s products and services grew by more than 30%, while sales were up by 9%.
In the aggregates business, sales for 2021 were just over €1.2 billion ($1.3 billion), compared to €992 million ($1.08 billion) the previous year, a rise of 21%.
Operating profit grew by 56% to €148 million ($161 million) in the same period, increasing from 9.5% of sales to 12.3%.