Business
Sale of Molten Metal Systems business (“MMS”)
Morgan Advanced Materials plc ("Morgan") announced the sale of its Molten Metal Systems (MMS) business unit to Vesuvius plc for £75.8 million. The sale includes Morgan's 75% shareholding in Morganite Crucible (India) Ltd. MMS generated £42.5 million in revenue and £5.2 million in adjusted operating profit in 2024. The £75.8 million consideration represents a multiple of 14.6x MMS's 2024 adjusted operating profit; after capital gains tax of approximately £7.3 million, the adjusted multiple is 13.2x. The transaction comprises a share exchange for the Indian subsidiary (1.2 million shares in Foseco India Ltd, valued at approximately £55.8 million), and a £20 million cash payment for the remaining MMS business. The transaction is expected to complete by early October 2025 and is conditional upon approval from Foseco India Ltd shareholders. Disclaimer*
About this update from Morgan Advanced Materials Plc
[{"type":"text","content":"\n\nPress Release\nMorgan Advanced Materials plc\n22 August 2025\n \nSale of Molten Metal Systems business (\"MMS\")\nMorgan Advanced Materials plc (\"Morgan\" or the \"Group\"), the global manufacturer of advanced carbon and ceramic materials for complex and technologically demanding applications, announces that it has reached an agreement to sell its MMS business unit, including the Group's 75.0% shareholding in Morganite Crucible (India) Ltd (\"MCIL\"), to Vesuvius plc (\"Vesuvius\"). The total consideration payable to Morgan is £75.8m, as set out in further detail below. The transaction is expected to complete by early October 2025.\nThe disposal of MMS simplifies Morgan, and is in line with the Group's strategy to accelerate its organic growth and generate higher returns by focusing on specific faster growing markets. The sale is expected to improve the financial position of the Group and provide optionality both for investment in growth and enhanced shareholder returns in line with our capital allocation priorities.\nMMS is part of Morgan's Thermal Products segment and provides crucibles products and melting solutions used in the production of non-ferrous metals, including zinc, aluminium, copper, brass, bronze and precious metals. It has operations in China, Germany and India and in 2024 generated revenue of £42.5m (4% of Morgan's total 2024 revenue) and adjusted operating profit of £5.2m. The total consideration payable to Morgan of £75.8m represents a multiple of 14.6x MMS' 2024 adjusted operating profit. After allowing for capital gains tax of c. £7.3m on the disposal of the shareholding in MCIL, the adjusted total consideration represents a multiple of 13.2x 2024 adjusted operating profit.\nThe transaction is structured as an acquisition of Morgan's 75% shareholding in its Indian listed subsidiary, MCIL, by Vesuvius' Indian listed subsidiary, Foseco India Ltd (\"FIL\"), with consideration for the acquisition being the issuance of new FIL shares to Morgan (the \"Indian Transaction\"), plus a cash acquisition of the remainder of the MMS business by Vesuvius (the \"Rest of World Transaction\"). As consideration for the Indian Transaction, Morgan will receive 1.2m shares in FIL, which represents a c. 15% shareholding in FIL valued at approximately £55.8m. In addition, Morgan will receive £20m in cash as gross conside...