Resco Products, Inc., under Balmoral Funds LLC, is set to be acquired by Austria-based RHI Magnesita in a deal valued at up to $430 million. RHI Magnesita, a major player in the refractory product market and listed on the London Stock Exchange, aims to enhance its North American presence with this acquisition.

“This transaction is a testament to our successful transformation over the past two years, all underpinned by a safety-first culture. Our focus and disciplined execution – coupled with operational improvements to increase manufacturing reliability, uptime and output – have driven significant tangible benefits, including all-time low incident rates, profitability improvement and customer growth,” said Mark G. Essig, Resco CEO.

“We are confident that RHIM shares our core values, including a deep-rooted commitment to safety, quality and innovation. As we enter this next chapter, joining forces with RHIM will enable us to accelerate this progress and drive our next phase of growth.”

The merger promises customer advantages such as a broader production network in North America and a more robust product range. Resco is expected to benefit from RHIM’s integrated model, ensuring a more efficient supply chain and support for sustainable industry practices. The deal, advised by Jefferies LLC and Vedder Price, is anticipated to finalize in late 2024, pending regulatory approval.

“We are grateful to Mark, Chairman of the Board Dr. Kevin Handerhan and the entire Resco team for their terrific partnership over the past two years,” said Robin Nourmand, a Managing Director at Balmoral.

“Working together, we significantly improved Resco’s operations, ultimately transforming the business and realizing a successful outcome for this investment. Looking ahead, we are confident that, together, RHIM and Resco will continue to deliver the high-quality products and services for which they are known and continue to meet the evolving needs of customers around the world. As gratifying as this success is for the company, its employees, customers and stakeholders, the dramatic improvement in environmental, health and safety culture and metrics leaves a lasting legacy that we are all most proud of.”

RHI Magnesita acquires P-D Refractories for a cash consideration of €45 million

RHI Magnesita acquires Europe, India, US operations of Seven Refractories for €93mn