Trio Engineered Products Acquired by Weir Group PLC
TCG Press Release
October 16, 2014
LOS ANGELES - Transworld Capital Group is proud to announce the sale of portfolio company Trio Engineered Products to UK-based Weir Group PLC for a total consideration of US$238 million. Headquartered in the US with substantial operations in China, Trio is a global market leader in the manufacture and sale of minerals processing solutions including rock and aggregate crushing and separation equipment. As one of the world’s largest engineering companies, Weir seeks to bolster its Weir Minerals business globally by integrating it with Trio’s products, market position, and manufacturing capabilities. With roughly 700 employees across China and the US, Trio had revenues of $108 million in 2013.
TCG’s involvement with Trio spans over 16 years. TCG CEO Jack Chen and Trio's founders originally formulated the idea of producing low-cost high-quality mining equipment and parts in China for the Western markets. They believed once the products were successful in the Western market, their price-quality advantage would allow them to be successful in the China. They developed a business plan together and the founders went on to start Trio and successfully built the company into one of the world's leading independent suppliers of aggregate and mining equipment.
In 2009, TCG served as the exclusive financial advisor to Trio by arranging a partial exit for the founders of Trio by bringing in Asia-based Navis Capital to recapitalize the company and take a majority equity interest. TCG retained an equity interest in Trio following the Navis transaction along with the founding team. Between 2010 and 2014, Trio's revenues expanded significantly, and its sales in China grew from negligible to around 40% of its total revenues. TCG achieved close to 3.5 times return on its investment within five years.
Mr. Chen remarked: “Our involvement with Trio has been intimate and very fruitful. We’ve helped contribute to a tremendous period of growth and value creation for Trio. We are confident that Trio’s new owners will continue this proud legacy.”
Founded in 1998, Trio designs and manufactures a range of crushers, screens, feeders, washers and material handling solutions for the aggregates and minerals markets. Trio provides engineered solutions for heavy duty applications utilizing its broad range of robust equipment and has developed a strong position in Chinese mining and US aggregates markets. The company employs around 700 people across its operations in China and the United States with revenues growing from US$74m in 2010 to US$108m in 2013. For more information, please visit: www.trioproducts.com.
Founded in 1871 in Glasgow, Scotland, the Weir Group is one of the world’s leading engineering businesses, providing products and services to customers in the minerals, oil and gas and power sectors. Weir’s customer base includes the world’s largest mining houses, major oil services businesses and nuclear and conventional power generation companies. Weir is a FTSE 100 company with a worldwide network of around 200 manufacturing facilities and service centers. The business has a presence in more than 70 countries, with over 15,000 people around the world, and annual revenues totaling more than £2.4 billion in 2013. For more information, visit www.weir.co.uk.
About Transworld Capital Group
Transworld Capital Group (TCG) provides cross-border strategic advisory and mergers and acquisition assistance to a diverse array of clients in the United States and across the Asia-Pacific Region. TCG also makes direct investments in select opportunities with unique cross-border value creation potential. With offices in Los Angeles, Shanghai and Hong Kong, we are uniquely positioned to help our clients and portfolio companies capitalize on opportunities which are not available in their home markets. TCG has set itself apart from other firms with an established track record of building industry-leading companies and completing several landmark transactions. More information can be found at www.transworldgroups.com.