(Oct 15): Scottish engineering firm Weir Group Plc said it would acquire Trio Engineered Products, a Chinese-American mining services firm, for an enterprise value of $220 million to expand its mining services business.

Weir will buy Trio from Kuala Lumpur-based private equity firm Navis Capital for $237.5 million, including $17.5 million in net cash balances held by Trio.

Weir said the deal, which is expected to add to its earnings immediately and exceed its cost of capital in the first year, would be funded by its existing bank facilities.

"This agreement will allow Weir Minerals to build upon its successful comminution (crushing, grinding and screening) strategy," Weir's Chief Executive Keith Cochrane said.

UBS analysts said it was "a sensible minerals bolt-on acquisition" and could increase Weir's consensus earnings-per-share expectation by about 2 percent.

Consensus forecast for Weir's earnings per share in 2014 is 141.6 pence, according to Thomson Reuters I/B/E/S.

Trio's full-year revenue is expected at about $120 million, with operating margins broadly in line with Weir's minerals division, Weir said.

Weir unsuccessfully tried to buy Finnish rival Metso Oyj earlier this year for 4.5 billion euros ($5.69 billion).

The company's shares pared early gains and were down 1.18 percent at 2187 pence at 0802 GMT on the London Stock Exchange. ($1 = 0.7902 euro)