Vesuvius plc, a global leader in molten metal engineering, announced the signing of binding agreements for the acquisition of two businesses, Ecil Met Tec and Process Metrix, in pursuit of the strategy to build a presence as a leading technical services provider to the steel and foundry industries.
The total consideration for these acquisitions will be approximately GBP 30 million, and it is expected that both will be completed during 2014. Both companies are profitable, and the acquisitions are expected to be earnings enhancing in 2015. However neither acquisition is expected to make a meaningful contribution to the 2014 earnings of Vesuvius. The management of both companies will remain with Vesuvius.
Ecil Met Tec is a manufacturer and supplier of consumable thermocouples used to measure, amongst other things, the temperature of molten metal in the steel making process. With operations in Piedade, near Sao Paulo in Brazil, and Cleveland, USA, Ecil Met Tec has 550 staff. The total consideration is up to BRL 86 million on a cash free debt free basis, with the majority payable on completion which is anticipated to occur towards the end of the year.
Process Metrix, based in Pleasanton, Northern California, is a supplier of laser units used to measure refractory wear in vessels used in the steel making process. The total consideration is USD 10 million on a cash free debt free basis. Of this, USD 6 million is payable on completion, which is expected by the end of September 2014, with the remainder payable over a 5 year period subject to the achievement of certain pre agreed targets.