18th Aug 2014 06:56
LONDON (Alliance News) - Molten metal engineering company Vesuvius PLC said Monday it has signed binding agreements to acquire two technical services businesses for a total of around GBP30 million.
Vesuvius said it expects to complete the acquisitions by the end of the year, and said both are expected to add to earnings in 2015 but not make a meaningful contribution to its 2014 earnings.
The company will acquired Brazil's Ecil Met Tec Ltda for up to BRL86 million on a cash-free debt-free basis, with the majority payable on completion. Ecil Met Tec manufactures and supplies consumable thermocouples used to measure the temperature of molten metal, amongst other things. It has operations in Brazil and the US.
It will acquire northern California-based Process Metrix LLC for a total consideration of USD10 million, also on a cash-free debt-free basis, with USD6 million payable on completion and the remainder over a five-year period based on the achievement of targets.
Process Metrix makes laser units used to measure refractory wear in vessels used in the steel-making process.
The management of both companies will remain with Vesuvius.
The acquisitions are the first Vesuvius has made following its de-merger from Cookson PLC in 2012. It said that the acquisitions were part of its strategy to build a presence in technical services for the steel and foundry industries.
"I am confident that Vesuvius' global presence and expertise will allow us to expand the accessible market for Ecil Met Tec and Process Metrix products and services," said Chief Executive François Wanecq in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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