Coal Age

FEB 2012

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screen machines update FLSmidth Ups the Ante for Ludowici services activities, including spare parts and consumables. Vendors Form Global Screening Alliance Ludowici manufactures some of the largest screening machines, such as the multi-slope banana shown here. Responding to a competitive bid from Weir, FLSmidth increased its offer to A$10/share for Ludowici during mid- February, which values the company at A$358 million ($384 million). Headquar- tered in Brisbane, Australia, Ludowici is a leading provider of vibrating screens, coal centrifuges, and complementary wear resistant products and services for the minerals industries. During January 2012, FLSmidth sur- prised many in the mining business when it announced it had entered into an agreement with Ludowici offering $7.20/share. Under that agreement, Ludowici's board had granted FLSmidth access to perform a confidential due dili- gence. At the time, Ludowici Investments Pty Ltd. and Julian Ludowici and the other Ludowici directors, who together control approximately 22% of the out- standing shares of Ludowici, said that, in the absence of a superior proposal, they would support the deal. In the meantime, they received a competitive, non-binding bid of A$7.92/share from Weir Group plc. They are saying the same thing again. FLSmidth's original offer was 42 also subject to due diligence, but that is no longer the case. "Ludowici is a well-known and respected brand in the coal processing sector," said Keith Cochrane, chief execu- tive, Weir Group plc. "The potential acquisition would extend Weir's offering in minerals processing and expand our exposure to the attractive and fast grow- ing coal sector where Weir is relatively unrepresented. As a part of the global Weir Minerals business, we would look to accelerate the growth of Ludowici, con- sistent with Weir's 2010 acquisition of Linatex." Acquiring Ludowici would allow both companies to add to their respective pro- cessing flowsheets. Weir would gain more access to coal and FLSmidth would improve its copper and iron ore offerings. With 450 employees and approximately 65% of its turnover in Australia, the acqui- sition of Ludowici would significantly expand both companies' presence in an important mining region. Another impor- tant aspect of the transaction would be customer service. Approximately 60% of Ludowici's turnover relates to customer Germany's Haver & Boecker, owner of Ontario-based W.S. Tyler Canada Ltd., and Quebec-based Major Wire Industries Ltd., have reached an agreement to establish a global screening alliance. Bringing together their collective experi- ence of more than 250 years in screening and a broad product line involving vibrat- ing screens, washing and pelletizing equipment and screen media, the alliance seeks to expand growth opportu- nities while further strengthening their current capabilities with customers throughout North America and globally. Representing its parent company Haver & Boecker, W.S. Tyler acquired a 40% share of Major Wire Industries January 1, 2012, and will purchase the remaining 60% in 2016. In North America, W.S. Tyler has Canadian facilities in St. Catharines, Ontario, and Edmonton, Alberta, and a U.S. facility in Salisbury, N.C., while Major Wire has operations in the Montreal area, and a U.S. facility in Puyallup, Wash. W.S. Tyler management has asked Major Wire to manage its Salisbury woven wire facility with the intent to serve Major Wire's extensive dealer net- work throughout the U.S. and in Latin America. All remaining operations for both companies within North America and globally will continue to operate independently. W.S. Tyler and Major Wire dealers and representatives throughout the world will also continue serving their respective customers and prospects as they do today. "Our alliance with Major Wire will prove to be a unique opportunity for two family-owned manufacturers to effec- tively employ their combined strengths and expertise to the benefit of the North American and global mining, mineral and aggregate markets," said Walter February 2012

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