Wajax acquires Weir Process Equipment, increases monthly distributions

By The Canadian Press

TORONTO - Wajax Income Fund (TSX: WJX-UN.TO) says it will acquire Weir Process Equipment, a distributor of pumps and equipment to the energy sector, for $25.4 million.

The Toronto-based distributor of mobile equipment, industrial components and power systems also said it was hiking its monthly distribution by a penny to 36 cents.

The deal, through Wajax's industrial components business unit, Kinecor, is expected to close in September.

Weir Process Equipment, formerly known as Peacock Inc., is a division of Weir Canada Inc. and a leading distributor of pumps, filtration products and material handling equipment to the oil and gas, power generation, mining and infrastructure sectors.

The acquired business will be combined with Kinecor's process equipment operation under the Peacock name, and is expected to lead to expense reductions and revenue growth.

"Combining this business with our Kinecor operation clearly establishes us as a leading distributor of process equipment in Canada," said Wajax CEO Neil Manning.

"This acquisition will be immediately accretive and is reflected in our decision to further increase monthly distributions."

Wajax is a diversified income fund that has three core distribution businesses in the sale and servicing of mobile equipment, industrial components and power systems.

The company has a network of more than 100 branches across Canada and a customer base in the natural resources, construction, transportation, manufacturing, industrial processing and utilities sectors.

Its units traded up 23 cents at $35.22 on the TSX.