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Highlights
- Strategic Acquisition: Weir Group to acquire Micromine for £657 million, with completion expected in Q2 2025.
- Immediate Growth Impact: Deal expected to be immediately accretive to EPS, with return on invested capital (ROIC) exceeding weighted average cost of capital (WACC) by 2028.
- Financial Position: Post-acquisition net debt to EBITDA expected to stay below 2.0x by December 2025 and below 1.5x by 2026.
Weir Group PLC (LSE:WEIR) has announced the acquisition of Micromine, a top-tier provider of digital mining solutions, in a £657 million deal aimed at transforming productivity and sustainability across the global mining sector. The transaction, set to close in Q2 2025, marks a significant step in Weir’s strategy to optimise the entire mining value chain through technology and digitalisation.
Expanding Digital Capabilities
Micromine’s platform offers a suite of mission-critical solutions spanning the entire mining lifecycle — from exploration to operations. With a 25% revenue CAGR and 90% recurring SaaS income, the acquisition adds a high-growth, high-margin business to Weir’s portfolio, complementing its aftermarket-focused model.
Weir plans to leverage its global distribution channels to accelerate Micromine’s growth, while integrating domain knowledge to enhance mine optimisation. “This acquisition strengthens our position as a technology leader in the mining industry, enabling customers to improve efficiency, reduce waste, and operate more sustainably,” the company said in a statement.
Financial Impact and Funding
The deal is valued at 10x December 2025 EV/revenue and 20x EV/EBITDA, excluding synergies. Despite the upfront investment, Weir expects the acquisition to be immediately accretive to earnings per share (EPS) in the first full year of ownership, with ROIC surpassing WACC by 2028.
Weir’s significant cash generation and disciplined capital management support the funding structure, which includes a mix of existing cash reserves and new debt facilities. The company ended 2024 with net debt of £535 million, reflecting a robust 102% free cash flow conversion. Even after the acquisition, Weir expects net debt to EBITDA to remain below 2.0x by 2025 and fall further to below 1.5x by 2026.
