Acquisition of Universal Refractories, Inc
2 December 2021
Vesuvius plc
Acquisition of Universal Refractories, Inc.
Vesuvius plc, a global leader in molten metal flow engineering and technology, has signed an agreement to acquire the assets and substantially all of the liabilities of Universal Refractories, Inc. ("Universal"), a specialty refractory producer based in Pennsylvania, USA, which is focused on tundish (steel continuous casting) applications (75% of sales) as well as consumable products for the foundry industry (25% of sales).
Universal's unaudited revenue and EBITDA in the trailing 12 months to October were $40.5m and $8.6m, respectively. T he acquisition will generate attractive synergies and will be accretive to Group return-on-sales even before synergies are considered.
The transaction values Universal at US$57.1 million (£42.6 million) on a cash and debt free basis and will be funded from Vesuvius' internal resources.
The acquisition is expected to close early next week.
Patrick André, Chief Executive of Vesuvius, commented:
"Universal is a strategically important acquisition for Vesuvius, which significantly expands Vesuvius' North American presence amongst electric arc furnace steel producers in our focus area of steel tundish applications, while also further strengthening our Foundry business. The financial rationale is compelling and we look forward to welcoming our new colleagues onboard and working with the Universal 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) 7584 641 315 |
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.
Forward looking statements
This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters. You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
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