RHI Magnesita has announced plans to acquire US-based Resco Group, a manufacturer of alumina and refractories. The deal is reported to be worth up to US$430m, says Reuters. According to RHI Magnesita, the move will accelerate its growth in alumina-based refractories and enable it to offer its US customer base an improved range of products.
“The acquisition advances our 'local for local' production strategy and will shorten supply chains, improve our speed of reaction, and increase the security of supply of refractories for our customers,” RHI Magnesita CEO Stefan Borgas said. The cash consideration for the acquisition is expected to be around US$324m, with an upper cap of about US$342m if the completion extends 18 months beyond signing.
The combined company would operate 15 production locations across the US, Canada and Mexico. The deal is expected to conclude in the 2H24.
