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LONDON - Morgan Advanced Materials plc announced Friday it has reached an agreement to sell its Molten Metal Systems (MMS) business to Vesuvius (LON:VSVS) plc for £75.8 million, in a transaction expected to complete by early October 2025.
The sale includes Morgan’s 75% shareholding in Morganite Crucible (India) Ltd and aligns with the company’s strategy to focus on faster growing markets. MMS, which provides crucibles and melting solutions for non-ferrous metals production, generated £42.5 million in revenue in 2024, representing 4% of Morgan’s total revenue.
The transaction values MMS at 14.6 times its 2024 adjusted operating profit of £5.2 million. After accounting for capital gains tax of approximately £7.3 million on the Indian subsidiary sale, the adjusted multiple is 13.2 times operating profit.
The deal is structured in two parts: Morgan will receive 1.2 million shares in Foseco India Ltd (valued at approximately £55.8 million) for its Indian operations, plus £20 million in cash for the remainder of the business, subject to customary adjustments.
"This disposal demonstrates the disciplined approach we take to our portfolio. It leaves Morgan more simple and better aligned to our strategy," said Damien Caby, Chief Executive Officer, in the press release statement.
The transaction requires approval from Foseco India shareholders. Vesuvius, which holds 75% of Foseco India, has committed to vote in favor of the deal.
MMS operates facilities in China, Germany, and India. Morgan’s newly acquired stake in Foseco India will be subject to a six-month lock-up period following completion.
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