28 January 2025
RHI Magnesita N.V.
("RHI Magnesita" or
"the Group")
Completion of Resco
transaction
RHI Magnesita announces the completion of its
$410 million (c.€390 million) acquisition of Resco Group, a US
based producer of alumina monolithics and wide range of basic and
non-basic refractories, following merger control authority
approval.
About
Resco
Resco is a producer of shaped and unshaped
refractories, including products for use in the petrochemical,
cement, aluminium, and steel making industries. The Group will
acquire six refractory plants and two raw material sites in the US
and two plants in the UK and Canada. Resco's Rescobond and
Rescocast brands are widely used in refining and petrochemical
applications by global customers.
Benefits of
the Acquisition
The Acquisition will deliver a broad range of
benefits to customers, including a significantly enhanced product
portfolio, supply security, improved responsiveness and
sustainability benefits.
The Acquisition will increase RHI Magnesita's
local production in the US and Canada by transferring significant
volumes of production from non-US plants to the Resco production
facilities in the US, and continues the Group's strategic growth
trajectory in alumina-based refractories.
Synergies will be created in the mid-term
following the restructuring of the combined supply chain, which is
expected to last approximately two years and incur one-time costs
of €60 million, including restructuring efforts in non-US plants. A
write down of assets in Brazil of approximately €30 million
connected to the completion of the Resco transaction is expected to
be recognised in the 31 December 2024 results, reflecting the
network optimisation which will result in transfer of production
capacity into the US.
Synergies are expected to be
generated through supply chain improvements, production network
optimisation, working capital reduction, logistics efficiencies, supply integration, technology
transfer, increased recycling opportunities and procurement
savings.
Commenting on the Acquisition, Stefan Borgas,
Chief Executive Officer of RHI Magnesita, said:
"The acquisition of Resco marks a significant
milestone for RHI Magnesita as we continue to expand our offering
in North America, responding to our customers' evolving priorities.
This deal will deliver a step change for our North American
business as we continue to enhance local-for-local production and
expand our product offering. Resco is a profitable and cash flow
generative business with a strong customer base in the
petrochemical, cement, and aluminium industries that will
immediately add value to RHI Magnesita.
Our new colleagues from Resco will join a
collaborative international team and benefit from a wide range of
skills, experience, and exceptional career development
opportunities. Together, I am confident that we will continue to
set new industry standards."
For further enquiries, please
contact:
Chris Bucknall, Head of Investor
Relations
Tel +43 699 1870 6490
E‐mail: chris.bucknall@rhimagnesita.com
Media:
Hudson Sandler
Mark Garraway, Emily Dillon, Nick
Moore
Tel +44 020 7796 4133
E-mail: rhimagnesita@hudsonsandler.com
About RHI
Magnesita
RHI Magnesita is the leading global supplier of
high-grade refractory products, systems and solutions which are
critical for high-temperature processes exceeding 1,200°C in a wide
range of industries, including steel, cement, non-ferrous metals
and glass. With a vertically integrated value chain, from raw
materials to refractory products and full performance-based
solutions, RHI Magnesita serves customers around the world, with
over 20,000 employees in 67 main production sites (including raw
material sites), 12 recycling facilities and more than 70 sales
offices. RHI Magnesita intends to leverage its leadership in terms
of revenue, scale, product portfolio and diversified geographic
presence to target strategically those countries and regions
benefiting from more dynamic economic growth prospects.
The Group is listed within the Equity Shares
(Commercial Companies) category ("ESCC") of the Official List of
the London Stock Exchange (symbol: RHIM) and is a constituent of
the FTSE 250 index, with a secondary listing on the Vienna Stock
Exchange (Wiener Börse). For more information please visit:
www.rhimagnesita.com
Definitions
|
"the Acquisition"
|
The Acquisition of Resco Group by RHI
Magnesita, first announced on 2 April 2024 and completed on 28
January 2025.
|
|
"Resco Group" or "Resco"
|
A group of companies carrying out the
manufacturing and sale of refractory products in the US, UK and
Canada.
|
