Home » Vesuvius Signs Agreements for New Acquisitions
Vesuvius recently 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 £30 million (~ $49.9 million), and it is expected that both will complete 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.
“I am delighted to announce the first acquisitions we have made since our demerger in 2012,” said François Wanecq, CEO. “At the point of demerger, we pledged to reshape the portfolio, improve margins, deliver superior returns to shareholders, and deliver growth in part by pursuing our strategy of providing technical services to the steel and foundry industries. To date, we have disposed of non-core activities in precious metals, construction and brick manufacturing, improved margins by 174 basis points, increased the dividend, and returned capital through a share buyback.”
“In addition to improving our base business, we are now turning our attention to building our technical services presence, and it is particularly pleasing to have added two high technology businesses with strong management teams and well-established track records of delivering superior service to their customers. I am confident that Vesuvius’ global presence and expertise will allow us to expand the accessible market for Ecil Met Tec and Process Metrix products and services.”
“These acquisitions are a further demonstration of delivering on the strategy set out at the time of demerger to expand our offering to customers through the supply of data that contributes to significant improvements in the quality and productivity of their processes and products. We will continue to improve the quality of our earnings by targeting further margin improvement, reviewing the portfolio, and adding to our technical services offering in line with our stated strategy.”