Weir to acquire ESCO Elecmetal Fundición Limitada for $75 million

[Ben Graham]

Mining technology firm Weir announced Friday it has entered into a binding agreement to acquire the remaining 50% share of its Chile-based joint venture ESCO Elecmetal Fundición Limitada (ESEL) for f £56 million ($75m). 

The deal is subject to customary net debt and working capital adjustments, Weir said, adding that the acquisition will strengthen its direct market channels and manufacturing capabilities in South America and accelerate the long-term market growth opportunity in the region. 

Established in 2007, ESEL is a joint venture between Weir’s 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 and built in 2012, will extend the company’s global manufacturing footprint and support further capacity optimisation across its foundry network, it said. 

“We are delighted to have reached this agreement to acquire the remaining share of our ESEL joint venture in Chile following a long and successful partnership with Elecmetal,” Weir CEO Jon Stanton said in a news release.  

“This strategic move strengthens our ability to serve customers across South America, expands our foundry capacity in the region and with our world-class engineering capabilities, will enable further optimisation of our manufacturing footprint globally,” Stanton said.  

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 Q1 2026.