Vesuvius Acquires Ohio-Based CCPI
The transaction values CCPI at $43.4 million (£33.1 million) on a cash and debt-free basis and will be funded from Vesuvius’ internal resources.
Vesuvius plc recently announced that it has acquired CCPI Inc., a specialty refractories producer focused on tundish (steel continuous casting) applications (65% of sales) and aluminum (35% of sales). Based in Ohio, CCPI will become part of Vesuvius’ Advanced Refractories business unit. The transaction values CCPI at $43.4 million (£33.1 million) on a cash and debt-free basis and will be funded from Vesuvius’ internal resources.
CCPI’s unaudited revenue and EBITDA for the financial year ended December 31, 2018, were $35.6 million (£27.2 million) and $5.4 million (£4.2 million), respectively. Vesuvius reports that the acquisition will be accretive to its return-on-sales even before synergies are considered.
“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 aluminum,” said Patrick André, chief executive of Vesuvius. “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.”