RHI Magnesita has announced the acquisition of the Preiss-Daimler Group's refractory businesses in Germany, the Czech Republic, and Slovenia for roughly €45 million in cash. The acquisition would strengthen RHI Magnesita's capabilities in alumina-based refractories and its footprint in process industries, where the Group is currently under-represented compared to other customer sectors.
Access to new clients and cross-selling opportunities, production network and logistics economies, vertical integration benefits, recycling, technology transfer, and procurement reductions are expected to provide significant synergies. Based on a pro forma EBITDA basis, the purchase is anticipated to not substantially increase the Group's gearing. The financial resources required for the acquisition will be provided through RHI Magnesita's already available and unused credit lines and its cash reserves.
"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," stated Stefan Borgas, Chief Executive Officer of RHI Magnesita.
P-D Refractories manufactures high-quality alumina-based refractories for process industries, with a dominant market position in the glass and aluminium sectors. The assets bought, which were previously part of the Preiss-Daimler Group, include refractory plants in Germany and the Czech Republic and clay, quartzite, and silica raw material sites in the Czech Republic and Slovenia. In the fiscal year ending on December 31, 2022, P-D Refractories reported total revenues of €171 million. Additionally, as of December 31, 2022, the company's gross assets were valued at €187 million.
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