21st Apr 2023 17:29
(Alliance News) - RHI Magnesita NV said on Friday that it will acquire the Europe, India and US operations of Seven Refractories for EUR93 million.
Vienna-based supplier of refractory products company notedSeven Refractories is a specialist supplier of non-basic monolithic refractory mixes.
"The acquisition will enable RHI Magnesita to offer a broader range of non-basic refractory mixes and is expected to be highly complementary to the group's existing non-basic portfolio. Attractive potential synergies are targeted through cross-selling opportunities, logistics improvements, increased recycling usage, procurement efficiencies and low capital intensity brownfield expansion projects. The senior management of Seven Refractories, including Chief Executive Officer Erik Zobec, will join the RHI Magnesita group to drive initiatives focused on non-basic monolithics following completion of the acquisition," RHI said.
RHI Magnesita said that the businesses it will be purchasing recorded revenue of USD105.0 million and pretax proft of USD11.4 million in 2022.
Seven Refractories' India-based business consists of a 49% stake in RHI Magnesita Seven Refractories Ltd, formerly Dalmia Seven Refractories Ltd. RHI Magnesita already owns 51% of RHI Magnesita Seven Refractories Ltd.
RHI Magnesita Chief Executive Officer Stefan Borgas said: "This transaction represents a significant step forward for RHI Magnesita in non-basic refractory mixes, which is additive to our existing presence in this market and highly complementary to our overall customer offering. We see compelling opportunities to realise synergies through the integration of Seven Refractories into our existing network and there is a strong alignment in seeking to offer our customers more sustainable products with a low carbon footprint."
Shares in RHI Magnesita closed down 0.6% at 2,212.07 pence in London on Friday.
By Emma Curzon, Alliance News reporter
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