Historic Scottish FTSE-100 company unveils bumper £657 million takeover: shares jump

Bosses have described Perth-based Micromine as a “top-tier” global software provider to the mining industry. It supports companies from exploration through mine design and planning, to operational scheduling and mining operations.

Weir, whose shares jumped 4 per cent, said it was a “compelling value creation opportunity” and would be immediately accretive to the group’s growth and margins. The Scottish company can trace its roots back more than 150 years as a pumps and engineering business and has undergone major restructuring in recent times to focus on supporting the global mining industry.

Chief executive Jon Stanton said: “The acquisition of Micromine is a significant step in our strategy of investing in technology to accelerate smart, efficient and sustainable mining. The combined force of Micromine and Weir will create a sector-leading globally scaled platform to optimise performance across the mining process.

“In Micromine, we are adding an established, high-quality business and proven performer that is complementary to Weir’s aftermarket-focused business model and current digital solutions. This acquisition provides a compelling opportunity for strong value creation in the immediate and longer term.

“Today is an important and exciting day,” he added. “Combining Weir’s engineering technology expertise and customer networks with Micromine’s leading software solutions and diversified customer base will allow us to further harness digital technology to drive productivity and sustainability for the global mining industry.”

The bumper deal is being funded through existing cash resources and new debt facilities. Details of the acquisition came as Weir reported a resilient 2024 in its full-year results, with strong aftermarket demand and improving margins.

The FTSE-100 company said that for the year to December 31, there was a 2 per cent increase in orders on a constant currency basis, topping £2.52 billion, while revenues on the same basis dipped 1 per cent to just under £2.51bn.

Statutory profit before tax increased 8 per cent on a reported basis to £347m. The company raised its dividend by 4 per cent to 40p per share.

Stanton told investors: “Weir is delivering on its mission to provide mining technology for a sustainable future and executing well against the commitments set out in our equity case. We are shaping innovation that will enable the mining industry to scale up and clean up and deliver strong outcomes for customers.

“The power of our transformed platform was evident in our strong execution in 2024 with operating margins and cash conversion significantly ahead of expectation, supported by strengthening demand conditions in the second half. As we go into 2025, we have a growing pipeline of project bids, a strong order book, and see positive aftermarket demand drivers in mining.”

Analysts at brokerage firm Shore Capital noted: “We believe the current valuation does not reflect the higher-quality business post the O&G [oil and gas] disposal (i.e. a business with greater resilience, lower volatility, higher earnings quality, operating margin improvement/expansion, improved cash generation metrics and a stronger balance sheet).”