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LONDON - Vesuvius (LON:VSVS) plc announced Friday it has entered into an agreement to acquire the Molten Metal Systems (MMS) business from Morgan Advanced Materials Plc for an enterprise value of £92.7 million.
The acquisition will expand Vesuvius’s presence in the non-ferrous market segment, increasing its Foundry division’s share of revenue from non-ferrous sales from 21% to approximately 27% on a pro forma basis.
The transaction structure involves £20 million in cash for the non-Indian business, while the 75% stake in Indian-listed Morganite Crucible (India) Limited will be acquired through the issuance of 1,150,800 new shares by Vesuvius’s Indian subsidiary, Foseco India Limited (FIL).
MMS, which supplies high-tech crucibles primarily to the non-ferrous market segment, generated turnover of approximately £42 million in 2024 with EBITDA of around £8 million. About 20% of its revenue comes from India, a market Vesuvius has identified as a strategic growth region.
According to the press release, Vesuvius expects to realize significant cost synergies in manufacturing and overhead expenses, potentially increasing EBITDA by at least 50%. The company stated the acquisition will be accretive to Group return-on-sales and earnings per share from the first year of ownership, even before considering synergies.
Upon completion, expected by early October 2025, FIL will own 75% of MCIL, with Vesuvius owning approximately 64% of FIL. Morgan will hold about 15% of FIL on an enlarged pro forma basis, with the remaining shares held by public shareholders.
The acquisition will trigger a Mandatory Tender Offer by FIL to the public holders of the remaining 25% of MCIL under Indian securities regulations.
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