# RHI Magnesita acquires P-D Refractories for a cash consideration of approximately €45 million

- Link: https://www.directorstalkinterviews.com/rhi-magnesita-acquires-p-d-refractories-for-a-cash-consideration-of-approximately-e45-million/4121128781
- Published: 2023-10-03T07:16:23+01:00
- Author: Olivia Thompson

**RHI Magnesita** (LON:RHIM) has announced the acquisition of the Germany, Czech
Republic and Slovenia based refractory businesses of the Preiss-Daimler Group (“
P-D Refractories”) for a cash consideration of approximately €45 million. 

**About P-D Refractories**

P-D Refractories is a producer of high quality alumina-based refractories for industrial
applications in process industries, with a leading market position in the glass 
and aluminium sectors. Previously part of the Preiss-Daimler Group, the assets acquired
include refractory plants in Germany and Czech Republic and clay, quartzite and 
silica raw material sites in Czech Republic and Slovenia.

P-D Refractories recorded revenues of €171 million in the year to 31 December 2022
and had Gross Assets of €187 million at 31 December 2022.

**Benefits of the Acquisition**

The Acquisition will increase RHI Magnesita’s capabilities in alumina-based refractories
and its presence in process industries, where the Group is currently under-represented
compared to other customer sectors. Substantial synergies are expected to be generated
through access to new customers and cross-selling opportunities, production network
and logistics efficiencies, vertical integration benefits, recycling, technology
transfer and procurement savings.

The acquisition is not expected to result in a material increase in gearing for 
the Group on a pro forma EBITDA basis. The cash consideration for the acquisition
is to be funded by RHI Magnesita’s existing committed and undrawn facilities and
cash.

> **Commenting on the Acquisition, Stefan Borgas, Chief Executive Officer of RHI
> Magnesita, said:**
> “The production capabilities and vertical integration of P-D Refractories, combined
> with RHI Magnesita’s know-how and renowned R&D capabilities, will complement our
> product portfolio and enlarge our production footprint and sales channels on a
> global scale. This acquisition is our sixth transaction to close in the year to
> date and marks a major milestone for both companies in the process industries 
> sector. Together we look forward to expanding our footprint and strengthening 
> our market presence by offering high-grade refractory products and solutions to
> an enlarged customer base.”

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