29.01.2025, 7006 Zeichen
Wien (OTS) - RHI Magnesita, the leading global supplier of high-grade
refractory
products, systems and solutions, is pleased to announce the
completion of the acquisition of the US-based Resco Group, from an
affiliate of Balmoral Funds LLC, a Los Angeles-based private equity
firm, and management. The acquisition, for an enterprise value of $
410 million (c.Ꞓ390 million), is the most significant investment by
the Group since the merger of RHI and Magnesita in 2017.
Zwtl.: A milestone acquisition in North America
The deal marks a major milestone for RHI Magnesita as it focuses
on delivering an exceptional customer experience in the important
North American region. RHIM’s refractory products are essential to
the production processes for cement, steel, aluminium, and many other
industrial producers in the region. The addition of Resco Group to
the Company’s North American operations will significantly increase
local-for-local production, improving supply chain security for
critical industries that underpin the economy of the continent.
Zwtl.: Elevating customer experience through an enlarged offering
The acquisition will deliver a broad range of benefits to
customers, including:
- A significantly enhanced product portfolio: offering a wider range
of basic and non-basic products, with applications across multiple
industries. The addition of Resco Group will support RHI Magnesita’s
strategic growth trajectory in alumina-based refractories.
- Supply security: an increased focus on local-for-local production
will result in a reduced reliance on international imports for US
customers.
- Improved responsiveness: the combination of RHI Magnesita’s global
manufacturing capabilities and an improved local-for-local production
footprint will drive logistical efficiencies and enhanced supply
chain agility for shorter lead times.
- Sustainability advancements: Resco customers will benefit from RHI
Magnesita’s industry leadership in innovation and sustainability as
well as circular economy solutions, to support broader industrial
decarbonization efforts. RHI Magnesita’s advanced recycling
initiatives in particular will play a key role in reducing waste by
converting used refractory materials into reusable raw materials.
- Industry expertise: supported by RHI Magnesita’s global leading
expertise, Resco Group and RHIM will continue to pioneer new industry
standards for the North American region.
Over the coming weeks and months, RHI Magnesita will focus on
integrating teams, processes, technology, and resources to ensure a
seamless transition and maintain business continuity for the combined
entity’s suppliers, customers and other stakeholders. As part of the
integration of the networks, RHI Magnesita will also invest into
Resco’s plants to further upgrade them, increase capacities,
introduce new product lines and improve overall productivity.
Stefan Borgas, CEO of RHI Magnesita, commented:
“The acquisition of Resco marks a significant milestone for RHI
Magnesita as we continue to expand our offering in North America,
responding to our customers’ evolving priorities while setting the
highest industry standards. This deal will deliver a step change for
our North American business as we continue to enhance local-for-local
production and expand our product offering. Resco is a profitable and
cash flow generative business with a strong customer base in the
North American petrochemical, cement, and aluminium industries that
will immediately add value to RHI Magnesita.
I would like to extend a warm welcome to our new colleagues from
Resco. A business is nothing without its people, and the excellent
reputation of Resco and its strong performance to date are testament
to the hard work of these expert and dedicated professionals. They
will join a collaborative international team, working alongside
colleagues across the globe to benefit from a diversity of skills,
experience, and exceptional career development opportunities at RHI
Magnesita. Together, I am confident that we will continue to set new
industry standards.”
Mark Essig, CEO of Resco from 2022 until the sale, commented:
“This transaction marks an exciting new chapter for Resco and our
employees. Over our 78-year history, we have built a strong
reputation for delivering high-quality refractory products and
technical solutions to our customers. Joining RHI Magnesita will
allow us to further enhance our capabilities and expand our reach
while maintaining our commitment to excellence in customer service.
We are grateful for Balmoral Funds' support during their ownership,
which helped strengthen our market position, and we look forward to
continuing our growth trajectory as part of RHI Magnesita's global
platform.”
About RHI Magnesita
RHI Magnesita is the leading global supplier of high-grade
refractory products, systems and solutions which are critical for
high-temperature processes exceeding 1,200°C in a wide range of
industries, including steel, cement, non-ferrous metals and glass.
With a vertically integrated value chain, from raw materials to
refractory products and full performance-based solutions, RHI
Magnesita serves customers around the world, with over 20,000
employees in 67 main production sites (including raw material sites),
12 recycling facilities and more than 70 sales offices. RHI Magnesita
intends to leverage its leadership in terms of revenue, scale,
product portfolio and diversified geographic presence to target
strategically those countries and regions benefiting from more
dynamic economic growth prospects.
The Group is listed within the Equity Shares (Commercial
Companies) category (“ESCC”) of the Official List of the London Stock
Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index,
with a secondary listing on the Vienna Stock Exchange (Wiener Börse).
For more information please visit: www.rhimagnesita.com
About Resco
Resco is a producer of shaped and unshaped refractories,
including products for use in the petrochemical, cement, aluminium,
and steel-making industries. Resco operates seven plants and two raw
material sites in the US and two plants in the UK and Canada. Resco’s
Rescobond and Rescocast brands are widely used in refining and
petrochemical applications by global customers.
Resco recorded unaudited revenues of $252 million in the year to
31 December 2023, with Profit before Tax of $20 million and had Gross
Assets of $191 million at 31 December 2023.
About Balmoral Funds
Balmoral is a Los Angeles, CA based private equity fund that was
founded in 2005. Balmoral’s objective is to be the financial partner
of choice for entrepreneurial and successful C-suite executives and
operating advisors creating transformative outcomes in the businesses
they co-invest in together. Balmoral has approximately $1.3 billion
of assets under management. Balmoral typically invests in companies
that have revenues between $30 to $500 million and require equity
investments of $10 to $120 million, with the capability of doing more
in particularly compelling opportunities.
Alsercast #12: Big Update Bahnhofsvorplatz, Gedenksekunde 6b47, Alserbachstrasse 25, bei Radwegen sind wir konträrer Meinung
Aktien auf dem Radar:Rosenbauer, EuroTeleSites AG, Strabag, Warimpex, Kapsch TrafficCom, Zumtobel, OMV, Österreichische Post, ATX, ATX Prime, ATX TR, Andritz, Erste Group, Uniqa, RBI, VIG, Mayr-Melnhof, Lenzing, DO&CO, Pierer Mobility, Porr, voestalpine, Austriacard Holdings AG, Marinomed Biotech, Gurktaler AG Stamm, Wienerberger, UBM, RHI Magnesita, Oberbank AG Stamm, Agrana, Amag.
S Immo
Die S Immo AG ist eine Immobilien-Investmentgesellschaft, die seit 1987 an der Wiener Börse notiert. Die Gesellschaft investiert zu 100 Prozent in der Europäischen Union und setzt den Fokus dabei auf Hauptstädte in Österreich, Deutschland und CEE. Das Portfolio besteht aus Büros, Einkaufszentren, Hotels sowie aus Wohnimmobilien.
>> Besuchen Sie 68 weitere Partner auf boerse-social.com/partner
Mehr aktuelle OTS-Meldungen HIER