Business
Acquisition of the Molten Metal Systems busin...
Vesuvius plc announced the acquisition of the Molten Metal Systems (MMS) business from Morgan Advanced Materials Plc for an enterprise value of £92.7 million. The acquisition comprises £20 million in cash and £55.8 million in newly issued shares of Vesuvius's Indian subsidiary, Foseco India Limited (FIL). MMS had a turnover of approximately £42 million in 2024, with approximately £8 million in EBITDA and 20% of its revenue derived from India. This acquisition is expected to increase Vesuvius's Foundry business's non-ferrous revenue share from 21% to approximately 27% and significantly expand its presence in the Indian market. The deal is projected to be accretive to earnings per share and return-on-sales from the first year, even before realizing at least a 50% increase in EBITDA from expected cost synergies. The acquisition is anticipated to have a neutral impact on Vesuvius's leverage. The transaction is expected to complete by early October 2025. Disclaimer*
About this update from Vesuvius Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\n 22 August 2025 Vesuvius plcAcquisition of the Molten Metal Systems business from Morgan Advanced Materials Plc. Expansion of the Group’s and Foundry business’ exposure to the faster-growing non-ferrous market segment and to India Summary- Acquisition of the Molten Metal Systems business from Morgan Advanced Materials Plc - Increases the Group’s and the Foundry business’ exposure to the faster-growing non-ferrous market segment and to India, in line with our strategic growth ambitions- The acquisition will generate significant cost synergies and will be accretive to Group return-on-sales and earnings per share from the first year of ownership, even before synergies are considered- Enterprise value of £92.7m, with the consideration comprising £20m of cash and newly issued shares in the Group’s listed Indian subsidiary, Foseco India Limited- Neutral impact on leverage given EBITDA acquired, synergies and the split between cash and issuance of new equity by Foseco India Limited Vesuvius plc is pleased to announce that the Vesuvius group (the “Group”) has today entered into an agreement to acquire the Molten Metal Systems (“MMS”) business from Morgan Advanced Materials Plc (“Morgan”) for an Enterprise Value of £92.7m on a cash free debt free basis. The acquisition will further expand the Group and our Foundry business into the faster-growing non-ferrous market segment. The business is highly complementary to our existing business and will take the Foundry division’s share of revenue from non-ferrous sales from 21% (2024) to c.27% on a pro forma basis. It will also increase our manufacturing footprint and sales exposure to the attractive and fast-growing Indian market, a core growth market for the Group. We expect to realise significant cost synergies in manufacturing and overhead costs, increasing EBITDA by at least 50%, which will further drive value for the Group. About MMSMMS supplies high-tech crucibles globally, principally in the non-ferrous market segment, with c.50% of revenue derived from aluminium...