Medu Capital, a local private equity firm has taken a 25.1% stake in the local subsidiary of mineral solutions provider Weir Minerals Africa in a broad-based black economic empowerment (B-BBEE) deal.
It has emerged that an empowerment transaction for minerals solution provider Weir Minerals Africa, the company’s South African operation, Weir Minerals South Africa (Pty) Ltd, took place in May 2020. The local operation is now 25.1% owned by black empowerment partner Medu Capital.
In reports Weir Minerals Africa Regional Managing Director Gavin Dyer said the deal is another step in an ongoing transformation journey. The transaction was finalised in Johannesburg in May 2020.
“We have, over the years, made significant progress in terms of our employment equity, skills development, preferential procurement and socio-economic development,” says Dyer. “We are therefore very pleased to conclude this transaction, which creates an organisational ownership structure that is more representative of the demographics of South Africa.”
“The deal has been facilitated by the creation of Weir Minerals South Africa (Pty) Ltd, whose assets include sales branches across the country, an assembly facility in Alrode, Gauteng, and a distributor network.”
“This initiative also further enhances our value proposition to customers in the mining industry as they work to support the imperatives of Mining Charter 3,” he says.
Part of the global Weir Group PLC, Weir Minerals Africa serves primarily the mining sector around Africa and the Middle East. It also manufactures world-class mineral processing equipment for export to international group destinations. Listed on the London Stock Exchange, Weir’s engineering heritage dates back over 140 years.
Formed in 2003, Medu Capital is a 100% black-owned investment management company with a focus on private equity. Dyer highlights that Weir Minerals South Africa looks forward to Medu Capital becoming an active partner in guiding and fostering its future success.
Weir Minerals South Africa’s two foundries
The supply chain of castings to the company was augmented when Weir Minerals South Africa commissioned its own greenfields foundry at its South African operations in Isando, Gauteng, in 2006. This foundry subsequently had to be upgraded substantially with new investment to make it operational.
The company acquired the Xmeco Foundry in Port Elizabeth 2012 and named it the Heavy Bay Foundry. The foundry has been manufacturing large, heavy castings in SG, high chrome and various alloyed steels since the early eighties. Once assembled a product could weigh up to 42 tons and individual castings weigh up to 18 tons.