RHI Magnesita expands footprint in North America through Resco Group acquisition
RHI Magnesita (RHHMY) has completed the acquisition of U.S.-based Resco Group for an enterprise value of $410 million (€390 million), marking its largest investment since the RHI and Magnesita merger in 2017. The acquisition significantly expands RHHMY's North American footprint and enhances local-for-local production capabilities.
The strategic acquisition will deliver multiple benefits including: an enhanced product portfolio with focus on alumina-based refractories, improved supply chain security through reduced reliance on international imports, enhanced logistical efficiencies, and advanced refractory recycling solutions. RHI Magnesita plans to invest in Resco's plants to upgrade facilities, increase capacities, and introduce new product lines.
Resco Group, with its 78-year history, brings strong expertise in the petrochemical, cement, and aluminum sectors, complementing RHHMY's existing operations.
RHI Magnesita (RHHMY) ha completato l'acquisizione del Resco Group, con sede negli Stati Uniti, per un valore dell'impresa di 410 milioni di dollari (390 milioni di euro), segnando il suo più grande investimento dalla fusione tra RHI e Magnesita nel 2017. L'acquisizione amplia significativamente la presenza di RHHMY in Nord America e migliora le capacità di produzione locale.
Questa acquisizione strategica porterà diversi benefici, tra cui: un portfolio prodotti potenziato con focus sui refrattari a base di allumina, maggiore sicurezza nella catena di fornitura grazie alla riduzione della dipendenza dalle importazioni internazionali, migliori efficienze logistiche e soluzioni avanzate per il riciclaggio dei refrattari. RHI Magnesita prevede di investire negli impianti di Resco per aggiornare le strutture, aumentare le capacità e introdurre nuove linee di prodotti.
Il Resco Group, con una storia di 78 anni, porta una forte esperienza nei settori della petrolchimica, del cemento e dell'alluminio, integrando le operazioni esistenti di RHHMY.
RHI Magnesita (RHHMY) ha completado la adquisición del Resco Group, con sede en EE.UU., por un valor de empresa de 410 millones de dólares (390 millones de euros), marcando su mayor inversión desde la fusión entre RHI y Magnesita en 2017. La adquisición expande significativamente la presencia de RHHMY en América del Norte y mejora las capacidades de producción local.
Esta adquisición estratégica ofrecerá múltiples beneficios, incluyendo: un portafolio de productos mejorado con enfoque en refractarios a base de alúmina, mayor seguridad en la cadena de suministro a través de una menor dependencia de las importaciones internacionales, eficiencias logísticas mejoradas y soluciones avanzadas de reciclaje de refractarios. RHI Magnesita planea invertir en las plantas de Resco para actualizar las instalaciones, aumentar capacidades e introducir nuevas líneas de productos.
Resco Group, con su historia de 78 años, trae una sólida experiencia en los sectores petroquímico, del cemento y del aluminio, complementando las operaciones existentes de RHHMY.
RHI Magnesita (RHHMY)는 미국에 본사를 둔 Resco Group을 4억 1천만 달러(3억 9천만 유로)에 인수했다고 발표했습니다. 이는 2017년 RHI와 Magnesita의 합병 이후 가장 큰 투자입니다. 이번 인수는 RHHMY의 북미 진출을 크게 확장하고 지역 생산 능력을 향상시킵니다.
이 전략적 인수는 알루미나 기반의 내화재에 중점을 둔 강화된 제품 포트폴리오, 국제 수입에 대한 의존도를 줄여 공급망 보안을 향상, 물류 효율성 개선, 고도화된 내화재 재활용 솔루션 등을 포함한 여러 가지 이점을 제공합니다. RHI Magnesita는 Resco의 공장을 업데이트하고, 생산 능력을 높이며, 새로운 제품 라인을 도입하기 위해 투자할 계획입니다.
78년의 역사를 가진 Resco Group은 석유화학, 시멘트 및 알루미늄 분야에서의 강력한 전문성을 제공하여 RHHMY의 기존 운영을 보완합니다.
RHI Magnesita (RHHMY) a finalisé l'acquisition du Resco Group, basé aux États-Unis, pour une valeur d'entreprise de 410 millions de dollars (390 millions d'euros), marquant son plus grand investissement depuis la fusion entre RHI et Magnesita en 2017. Cette acquisition élargit considérablement l'empreinte nord-américaine de RHHMY et améliore les capacités de production locale.
Cette acquisition stratégique apportera de multiples avantages, notamment : un portefeuille de produits enrichi axé sur les réfractaires à base d'alumine, une sécurité accrue de la chaîne d'approvisionnement grâce à une dépendance réduite aux importations internationales, des gains d'efficacité logistique et des solutions avancées de recyclage des réfractaires. RHI Magnesita prévoit d'investir dans les usines de Resco pour moderniser les installations, augmenter les capacités et introduire de nouvelles gammes de produits.
Le Resco Group, avec ses 78 ans d'histoire, apporte une solide expertise dans les secteurs pétrochimique, ciment et aluminium, complétant les opérations existantes de RHHMY.
RHI Magnesita (RHHMY) hat die Übernahme der in den USA ansässigen Resco Group zu einem Unternehmenswert von 410 Millionen US-Dollar (390 Millionen Euro) abgeschlossen, was die größte Investition seit der Fusion von RHI und Magnesita im Jahr 2017 markiert. Die Übernahme erweitert signifikant die nordamerikanische Präsenz von RHHMY und verbessert die lokalen Produktionsmöglichkeiten.
Die strategische Übernahme wird mehrere Vorteile bieten, darunter: ein erweitertes Produktportfolio mit Fokus auf alumina-basierten Feuerfeststoffen, verbesserte Sicherheit in der Lieferkette durch reduzierten Abhängigkeit von internationalen Importen, verbesserte logistische Effizienzen und fortschrittliche Lösungen für das Recycling von Feuerfeststoffen. RHI Magnesita plant Investitionen in die Werke von Resco, um die Einrichtungen zu modernisieren, die Kapazitäten zu erhöhen und neue Produktlinien einzuführen.
Die Resco Group, die auf eine 78-jährige Geschichte zurückblickt, bringt starke Fachkenntnisse in den Bereichen Petrochemie, Zement und Aluminium mit und ergänzt damit die bestehenden Aktivitäten von RHHMY.
- Largest strategic acquisition ($410M) since 2017 merger
- Significant expansion in North American market
- Enhanced local production reducing import dependency
- Strengthened position in alumina-based refractories
- Plans for plant upgrades and capacity expansion
- Access to Resco's established customer base in petrochemical, cement, and aluminum sectors
- Substantial capital expenditure required for acquisition ($410M)
- Additional investment needed for plant upgrades and integration
- Integration risks with existing operations
Acquisition will strengthen customer solutions in
Two RHI Magnesita employees working (Photo: Business Wire)
A milestone acquisition in
The deal marks a major milestone for RHI Magnesita as it focuses on delivering an exceptional customer experience in the important North American region. RHIM’s refractory products are essential to the production processes for cement, steel, aluminium, and many other industrial producers in the region. The addition of Resco Group to the company’s
Elevating customer experience through enlarged offering
The acquisition will deliver a range of broader benefits to customers, including:
- A significantly enhanced product portfolio: offering a wider range of products, with application across multiple industries, as the addition of Resco Group supports the RHI Magnesita’s strategic growth trajectory in alumina-based refractories.
-
Surety of supply: an increased focus on local-for-local production will result in a reduced reliance on international imports for customers in the
U.S. - Improved responsiveness: the combination of RHI Magnesita’s global manufacturing capabilities and an improved local-for-local production footprint will drive logistical efficiencies and enhanced supply chain agility for shorter lead times.
- Sustainability advancements: Resco Group’s customers will benefit from RHI Magnesita’s industry leadership in innovation and sustainability as well as its circular economy and advanced refractory recycling solutions, to support broader industrial decarbonization efforts.
- Industry expertise: supported by RHI Magnesita’s global leading expertise, Resco Group and RHI Magnesita will continue to pioneer new industry standards for the North American region.
Over the coming weeks and months, RHI Magnesita will focus on integrating teams, processes, technology, and resources to ensure a seamless transition and maintain business continuity for the combined entity’s suppliers, customers and other stakeholders. As part of the integration of the networks, RHI Magnesita will also invest into Resco’s plants to further upgrade them, increase capacities, introduce new product lines and improve overall productivity.
"We are thrilled to enhance RHI Magnesita’s footprint in
Mark Essig, CEO of Resco from 2022 until the sale, commented: "This transaction marks an exciting new chapter for Resco and our employees. Over our 78-year history, we have built a strong reputation for delivering high-quality refractory products and technical solutions to our customers. Joining RHI Magnesita will allow us to further enhance our capabilities and expand our reach while maintaining our commitment to excellence in customer service. We are grateful for Balmoral Funds' support during their ownership, which helped strengthen our market position, and we look forward to continuing our growth trajectory as part of RHI Magnesita's global platform."
About RHI Magnesita
RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers around the world, with over 20,000 employees in 67 main production sites (including raw material sites), 12 recycling facilities and more than 70 sales offices. RHI Magnesita intends to leverage its leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefiting from more dynamic economic growth prospects.
The group is listed within the Equity Shares (Commercial Companies) category (“ESCC”) of the Official List of the London Stock Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit: www.rhimagnesita.com
About Resco
Resco is a producer of shaped and unshaped refractories, including products for use in the petrochemical, cement, aluminium, and steel-making industries. Resco operates seven plants and two raw material sites in the US and two plants in the
About Balmoral Funds
Balmoral is a
View source version on businesswire.com: https://www.businesswire.com/news/home/20250128344992/en/
Media:
Ann Barlow
Tel 925-200-6539
E-mail: Ann.barlow@ruderfinn.com
Source: RHI Magnesita
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