Business
Acquisition of Seven Refractories
Acquisition of Seven Refractories.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \n \n 21 April 2023\n \n \n \n \n \n \n RHI Magnesita N.V.\n \n \n \n (\"RHI Magnesita\" or \"the Group\")\n \n \n \n \n \n \n Acquisition of Seven Refractories\n \n \n \n \n \n \n RHI Magnesita announces the acquisition of the Europe, India and US operations of Seven Refractories for cash consideration of approximately €93 million.\n \n \n \n Seven Refractories\n \n \n \n Seven Refractories is a specialist supplier of non-basic monolithic refractory mixes with broad applications across all of the Group's customer segments including iron and steel, cement, aluminium and non-ferrous metals. Seven Refractories has customer relationships in 45 countries and a strong track record of innovation, including the development of a range of environmentally sustainable products and flexible manufacturing technologies. Seven Refractories employs around 240 staff at its production sites in Slovenia, India and the US and at its sales offices and service centres in Cyprus, Germany, Italy and the United Kingdom.\n \n \n Non-basic refractory mixes are expected to become increasingly important with the development of new low CO2 emitting manufacturing technologies within the Group's key customer industries. Products offered by Seven Refractories range from low temperature fireclay to ultra-high temperature zircon mixes, high-grade alumina mixes and sustainable taphole clay with a low CO2 footprint.\n \n \n \n Benefits of the Acquisition\n \n \n \n The Acquisition will enable RHI Magnesita to offer a broader range of non-basic refractory mixes and is expected to be highly complementary to the Group's existing non-basic portfolio. Attractive potential synergies are targeted\n through cross selling opportunities, logistics improvements, increased recycling usage, procurement efficiencies and low capital intensity brownfield expansion projects\n . The senior management of Seven Refractories, including Chief Executive Officer Erik Zobec, will join the RHI Magnesita Group to drive initiatives focused on non-basic monolithics following completion of the Acquisition.\n \n \n \n Acquisition details\n \n \n \n The businesses to be purchased in the Acquisition recorded revenues of €105 million and Profit Before Tax of €11.4 million in the year to 31 December 2022 and had Gross Assets of €86.7 million at 31 December 2022. The shareholders...