REG - Vesuvius plc - Acquisition of Universal Refractories, Inc

VesuviusAnnouncement

02/12/2021 14:00

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RNS Number : 4121U  Vesuvius plc  02 December 2021

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. The 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

www.vesuvius.com (http://www.vesuvius.com)

 

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