Business
Weir to acquire ESEL
Weir Group PLC has entered into a binding agreement to acquire the remaining 50% of its Chilean joint venture, ESEL, for a sterling equivalent purchase price of £56 million, subject to adjustments. This acquisition will enhance Weir's direct market channels and manufacturing capabilities in South America, accelerating its go-direct strategy and increasing foundry capacity, particularly for ground engaging tools. The transaction is expected to complete in Q1 2026 and will be financed from existing debt facilities, with no impact on Weir's previously stated net debt guidance for fiscal years 2025 and 2026. Disclaimer*
About this update from Weir Group Plc
[{"type":"text","content":"\n\n12 December 2025\nPress Release\nWeir to acquire ESEL, strengthening manufacturing capabilities and accelerating growth in Chile\nWeir, a global leader in mining technology, 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 a sterling equivalent1 purchase price of £56m (US$75m), 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 LATAM region.\nAcquisition accelerates go-direct strategy and increases foundry capacity\nEstablished in 2007, ESEL is a joint venture between our 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 our global manufacturing footprint and support further capacity optimisation across our foundry network by leveraging Weir's world-class engineering and supply chain expertise.\nThis acquisition enables Weir to transition to a direct-to-customer model in this important mining market with strong structural drivers. 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.\nCommenting on the agreement, Jon Stanton, Chief Executive of Weir said:\n\"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. 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.\nThe 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 min...