Acquisition sees Vesuvius expand in aluminium.
Molten metal flow engineering and technology company Vesuvius has announced that it has agreed to acquire CCPI, a speciality refractory producer. CCPI focuses on tundish (steel continuous casting) applications (65% of sales) and aluminium (35% of sales). The company is based in Ohio, USA, and will become part of Vesuvius’ Advanced Refractories division. The transaction values CCPI at USD43.4 million on a cash and debt-free basis and will be funded from Vesuvius’ internal resources. The acquisition is expected to close within the first week of March.
The acquisition would be accretive to group return-on-sales even before synergies were considered, Vesuvius said.
“CCPI is a strategically important acquisition for Vesuvius, which significantly expands Vesuvius’ North American presence in refractories used in steel tundish applications, while also increasing Vesuvius’ exposure to aluminium,” said Vesuvius chief executive officer Patrick André.
“The financial rationale is compelling and we look forward to working with CCPI’s management team to continue its strong track record of value creation.”