Mar. 1, 2019 - Molten metal flow engineering and technology company Vesuvius announced in late February that it has agreed to acquire CCPI - a speciality refractory producer focused on tundish (65% of sales)applications and aluminium (35% of sales).
The FTSE 250 company said CCPI, based in Ohio, would become part of its Advanced Refractories business unit.
It said the transaction valued CCPI at USD 43.4 million (GBP 33.1 million) on a cash-free, debt-free basis, and would be funded from its internal resources. The acquisition was expected to close within the coming week. The purchase price represents 8x 2018 EBITDA, with the implied pro forma acquisition multiple said to be “significantly lower” post synergies, which were expected to be realised during 2019 and 2020.
Vesuvius said that the acquisition would be accretive to group return-on-sales even before synergies were considered.
Mr Patrick André CEO of Vesuvius said that “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.”
He added that “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.”