RHI Magnesita Announced the Acquisition of Seven Refractories
Thursday, April 27, 2023
RHI Magnesita/AT announced in April 2023 the acquisition of the Europe, India and US operations of Seven Refractories; acquisition will complement RHI Magnesita’s existing non-basic refractories portfolio and open new opportunities in the development of low CO2 emitting manufacturing technologies.
Seven Refractories is a specialist supplier of non-basic monolithic refractory mixes with broad applications across all the company’s customer segments including iron and steel, cement, aluminium and non-ferrous metals. Non-basic refractory mixes are expected to become increasingly important with the development of new low CO2 emitting manufacturing technologies within RHI Magnesita’s key customer industries.
Products offered by Seven Refractories range from low temperature fireclay to ultra-high temperature zircon mixes, high-grade alumina mixes and sustainable taphole clay with a low CO2 footprint. Seven Refractories employs around 240 staff at its production sites in Slovenia, India and USA and at its sales offices and service centres in Cyprus, Germany, Italy and GB. The businesses to be purchased in the acquisition recorded revenues of EUR 105 million and profit before tax of EUR 11.4 million in 2022.
The acquisition will enable RHI Magnesita to offer a broader range of non-basic refractory mixes and is expected to be highly complementary to the Group’s existing non-basic portfolio. Attractive potential synergies are targeted through cross selling opportunities, logistics improvements, increased recycling usage, procurement efficiencies and low capital intensity brownfield expansion projects. The senior management of Seven Refractories, including Chief Executive Officer Erik Zobec, will join the RHI Magnesita Group to drive initiatives focused on non-basic monolithics following completion of the acquisition.
Commenting on the acquisition, Stefan Borgas, Chief Executive Officer of RHI Magnesita, said: “This transaction represents a significant step forward for RHI Magnesita in non-basic refractory mixes which is additive to our existing presence in this market and highly complementary to our overall customer offering. We see compelling opportunities to realize synergies through the integration of Seven Refractories into our existing network and there is a strong alignment in seeking to offer our customers more sustainable products with a low carbon footprint. I am pleased to welcome this entrepreneurial team to our Group. RHI Magnesita’s network will enable them to continue to build the business even more successfully on a truly global basis. Together we will continue to execute our strategy to grow through consolidation.”
Erik Zobec, Chief Executive Officer of Seven Refractories, said: “The Seven Refractories team is delighted to be joining the RHI Magnesita Group at this exciting stage in its development as the global leader in refractories. Our specialist presence in the non-basic monolithics market will be supported and driven forwards through this combination. We will continue to serve our customers with the innovative products, technology leadership and proven flexibility they have come to expect from us, whilst the additional capabilities and global presence of RHI Magnesita will deliver a step change in the breadth of products and services that we can offer to them.”
The acquisition is subject to standard closing conditions including competition authority clearance and is expected to complete in the second half of 2023.