Weir to strengthen South American ground engaging tools position with ESEL acquisition
Weir says it has entered into a binding agreement to acquire the remaining 50% share of its Chile-based joint venture ESCO Elecmetal Fundición Limitada (ESEL), a manufacturer of high-quality ground engaging tools, for some $75 million, subject to customary net debt and working capital adjustments.
The acquisition will strengthen Weir’s direct market channels and manufacturing capabilities in South America and accelerate the long-term market growth opportunity for Weir in the Latin America region, it says.
Established in 2007, ESEL is a joint venture between the Weir ESCO division and Elecmetal, a global metallurgical company headquartered in Chile, created to distribute ground engaging tools for the South American mining industry. Its operations, which include a foundry in Chile built in 2012, will extend Weir’s global manufacturing footprint and support further capacity optimisation across its foundry network by leveraging Weir’s world-class engineering and supply chain expertise, according to the company.
“This acquisition enables Weir to transition to a direct-to-customer model in this important mining market with strong structural drivers,” it said. “The acquisition will accelerate ESCO’s proven go-direct strategy supporting the division’s growth and market share in the region with our best in class technology and customer intimacy.”
Jon Stanton, Chief Executive of Weir, said the strategic move will not only strengthen the company’s ability to serve customers across South America, but also enable further optimisation of its manufacturing footprint globally.
He added: “The transaction will also accelerate our go-direct strategy in Chile, mirroring the success we’ve achieved in other ESCO geographies. With full operational control, we will enhance our Weir network to grow market share and capitalise on Chile’s long-term structural tailwinds in mining, particularly in copper.”
The transaction is expected to complete in the March quarter of 2026, subject to customary commercial conditions. Post-completion, the business will be integrated into the South American region within the ESCO division.
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