By Everdeen Mason
Foster Wheeler AG said it agreed to acquire MDM Engineering Group Ltd. (MDM.LN) for $109 million in cash as the engineering and construction company continues to grow through acquisitions.
South Africa-based MDM Engineering is a minerals process and project management company with about 208 employees. The company does preliminary and final feasibility studies, as well as plant design, construction and commissioning.
Foster Wheeler's Chief Executive Officer Kent Masters said MDM Engineering is a "strong fit" for the company that enhances its global capacity in its minerals and metals business.
Foster Wheeler, based in the U.K., returned to sales growth in the fourth quarter after almost two years of declines, but its earnings swung to a loss recently on asbestos-related charges and impairment costs.
The engineering and construction company also agreed in February to purchase British engineering consulting company AMEC Plc. for $16 a share, or about $3.3 billion. The company expects this acquisition to add to earnings in the double-digits in the first 12 months after it closes.
Foster Wheeler shares closed Wednesday at $31.66 and were inactive premarket. The stock is up 48% in the past 12 months.
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