LONDON, UK: RHI Magnesita announced the acquisition of the Germany, Czech Republic and Slovenia based refractory businesses of the Preiss-Daimler Group (P-D Refractories) for a cash consideration of approximately €45 million.

P-D Refractories is a producer of high quality alumina-based refractories for industrial applications in process industries, with a leading market position in the glass and aluminium sectors. Previously part of the Preiss-Daimler Group, the assets acquired include refractory plants in Germany and Czech Republic and clay, quartzite and silica raw material sites in Czech Republic and Slovenia.

P-D Refractories recorded revenues of €171 million in the year to 31 December 2022 and had Gross Assets of €187 million at 31 December 2022.

The acquisition will increase RHI Magnesita’s capabilities in alumina-based refractories and its presence in process industries, where the Group is currently under-represented compared to other customer sectors. Substantial synergies are expected to be generated through access to new customers and cross-selling opportunities, production network and logistics efficiencies, vertical integration benefits, recycling, technology transfer and procurement savings.

The acquisition is not expected to result in a material increase in gearing for the Group on a pro forma EBITDA basis. The cash consideration for the acquisition is to be funded by RHI Magnesita’s existing committed and undrawn facilities and cash.

Commenting on the acquisition, Stefan Borgas, Chief Executive Officer of RHI Magnesita, said: “The production capabilities and vertical integration of P-D Refractories, combined with RHI Magnesita’s know-how and renowned R&D capabilities, will complement our product portfolio and enlarge our production footprint and sales channels on a global scale.

This acquisition is our sixth transaction to close in the year to date and marks a major milestone for both companies in the process industries sector. Together we look forward to expanding our footprint and strengthening our market presence by offering high-grade refractory products and solutions to an enlarged customer base.”