Vesuvius plc Acquisition (3576R)
February 28 2019 - 1:03AM
UK Regulatory
TIDMVSVS
RNS Number : 3576R
Vesuvius plc
28 February 2019
Vesuvius plc
28 February 2019
Acquisition of CCPI Inc
Vesuvius plc, a global leader in molten metal flow engineering
and technology, signed an agreement on 27 February 2019 to acquire
CCPI Inc ("CCPI"), a specialty refractory producer focused on
tundish (steel continuous casting) applications (65% of sales) and
aluminium (35% of sales).
CCPI is based in Ohio, USA, and will become part of the Group's
Advanced Refractories business unit. The transaction values CCPI at
US$43.4 million (GBP33.1 million) on a cash and debt free basis and
will be funded from Vesuvius' internal resources. The acquisition
is expected to close within the coming week.
The purchase price represents 8x 2018 EBITDA and the implied pro
forma acquisition multiple is significantly lower post synergies,
which are expected to be realised during 2019-2020.
CCPI's unaudited revenue and EBITDA for the financial year ended
31 December 2018 were US$35.6 million (GBP27.2 million) and US$5.4
million (GBP4.2 million), respectively. The acquisition will be
accretive to Group return-on-sales even before synergies are
considered.
Patrick André, Chief Executive of Vesuvius, commented:
"CCPI is a strategically important acquisition for Vesuvius,
which significantly expands Vesuvius' North American presence in
refractories used in steel tundish applications, while also
increasing Vesuvius' exposure to aluminium. The financial rationale
is compelling and we look forward to working with CCPI's management
team to continue its strong track record of value creation."
For further information, please contact:
Patrick André, Chief
Executive +44 (0) 207 822 0000
Guy Young, Chief Financial
Officer +44 (0) 207 822 0000
Euan Drysdale, Group Head
of Corporate Finance +44 (0) 207 822 0027
Virginia Skroski, Investor
Relations Manager +44 (0) 207 822 0016
Vesuvius plc
165 Fleet Street
London, EC4A 2AE
Tel: +44 (0) 20 7822 0000
Web: www.vesuvius.com
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering and
technology principally serving the steel and foundry industries. We
develop innovative and customised solutions, often used in
extremely demanding industrial environments, which enable our
customers to improve their manufacturing processes, enhance product
quality and reduce costs. These include flow control solutions,
advanced refractories and other consumable products and
increasingly, related technical services including data capture. We
have a worldwide presence. We serve our customers through a network
of low-cost manufacturing plants located close to their own
facilities, and embed our industry experts within their operations,
who are all supported by our global technology centres. Our core
competitive strengths are our market and technology leadership,
strong customer relationships, well established presence in
developing markets and our global reach, all of which facilitate
the expansion of our addressable markets. Our ultimate goal is to
create value for our customers, and to deliver sustainable,
profitable growth for our shareholders giving a superior return on
their investment whilst providing each of our employees with a safe
workplace where he or she is recognised, developed and properly
rewarded.
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END
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