Home » News » FTSE 250 » Vesuvius plc Acquisition of CCPI Inc
Vesuvius plc

Vesuvius plc Acquisition of CCPI Inc

Vesuvius plc (LON:VSVS), a global leader in molten metal flow engineering and technology, signed an agreement on 27 February 2019 to acquire CCPI Inc (“CCPI”), a specialty refractory producer focused on tundish (steel continuous casting) applications (65% of sales) and aluminium (35% of sales).

CCPI is based in Ohio, USA, and will become part of the Group’s Advanced Refractories business unit. The transaction values CCPI at US$43.4 million (£33.1 million) on a cash and debt free basis and will be funded from Vesuvius’ internal resources. The acquisition is expected to close within the coming week.

The purchase price represents 8x 2018 EBITDA and the implied pro forma acquisition multiple is significantly lower post synergies, which are expected to be realised during 2019-2020.

CCPI’s unaudited revenue and EBITDA for the financial year ended 31 December 2018 were US$35.6 million (£27.2 million) and US$5.4 million (£4.2 million), respectively. The acquisition will be accretive to Group return-on-sales even before synergies are considered.

Patrick André, Chief Executive of Vesuvius, commented:

“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 aluminium. 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.”