Weir, 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 equivalent(1) 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.

Acquisition accelerates go-direct strategy and increases foundry capacity

Established 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.

This 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.

Commenting on the agreement, Jon Stanton, Chief Executive of Weir 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. 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.

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, subject to customary commercial conditions. Post-completion, the business will be integrated into the South American region within our ESCO division. The deal will be financed from existing debt facilities and has no impact to Weir's previous net debt guidance for fiscal years 2025 and 2026(2).

(1)Transaction spot rate of 1.34
(2) Net debt to EBITDA is expected to be below 2.0x at December 2025 and below 1.5x by year end 2026

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