LONDON, UK: RHI Magnesita, a global leader in refractories, has announced its acquisition of the Europe, India, and US operations of Seven Refractories for approximately €93 million in cash.

Seven Refractories specializes in non-basic monolithic refractory mixes, which have a wide range of applications across several customer segments, including iron and steel, cement, aluminum, and non-ferrous metals.

The company has a strong track record of innovation and customer relationships in 45 countries.

The acquisition will enable RHI Magnesita to expand its non-basic refractory mixes portfolio and target potential synergies through cross-selling, logistics improvements, increased recycling usage, procurement efficiencies, and brownfield expansion projects.

The businesses being acquired recorded revenues of €105 million and a profit before tax of €11.4 million in the year to 31 December 2022. The acquisition is expected to complete in the second half of 2023 and will be funded from RHI Magnesita’s existing committed and undrawn facilities and cash.

Stefan Borgas, Chief Executive Officer of RHI Magnesita, said: “This transaction represents a significant step forward for RHI Magnesita in non-basic refractory mixes, which is additive to our existing presence in this market and highly complementary to our overall customer offering.

We see compelling opportunities to realise synergies through the integration of Seven Refractories into our existing network and there is a strong alignment in seeking to offer our customers more sustainable products with a low carbon footprint.

I am pleased to welcome this entrepreneurial team to our Group. RHI Magnesita’s network will enable them to continue to build the business even more successfully on a truly global basis. Together we will continue to execute our strategy to grow through consolidation.”

Erik Zobec, Chief Executive Officer of Seven Refractories, said: “The Seven Refractories team is delighted to be joining the RHI Magnesita Group at this exciting stage in its development as the global leader in refractories.

Our specialist presence in the non-basic monolithics market will be supported and driven forwards through this combination.

We will continue to serve our customers with the innovative products, technology leadership and proven flexibility they have come to expect from us, whilst the additional capabilities and global presence of RHI Magnesita will deliver a step change in the breadth of products and services that we can offer to them.”

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