Refractory concrete maker acquired in reported €93m deal
Seven Refractories, the Divača-based maker of refractory concrete and plugs for blast furnaces, will get a new owner in RHI Magnesita, the Austrian producer of refractory materials, in a deal reportedly valued at €93 million.
RHI Magnesita, which last year generated €3.3 billion in revenue and €167 million in net profit at the group level, is buying Seven Refractories business in the parent factory in Divača and in factories in India and the US.
The sales offices and service centres in Cyprus, Germany, Italy and the UK are also part of the deal.
Announcing the deal, RHI Magnesita said on 24 April that it complements its product portfolio and opens up new opportunities in the development of production technologies with a low carbon footprint.
While the acquiring company has not revealed the price of the deal, the business newspaper Finance reports it stands at €93 million.
The acquisition by RHI Magnesita, which has 33 production units and more than 70 points of sale worldwide, is expected to be completed in the second half of the year, pending regulatory approval.
Erik Zobec, the chief executive officer and co-owner of Seven Refractories, has told Finance that the sale would allow the company to grow further.
"We see a lot of potential for growth with RHI Magnesita. They have a very large marketing network, and we see many opportunities especially in the Asian market, but also in India and the US," he added.
Seven Refractories, which launched its operations in Divača in 2011, last year generated €105 million in revenue and €11.4 million in pre-tax profit with 240 employees at the group level.
The company is currently owned by Seven Refractories Gmbh from Austria, which is in the majority ownership of financial funds, while the management holds a 30% stake.