Vesuvius Agrees £92.7m Deal to Buy Molten Metal Systems from Morgan Advanced Materials

Vesuvius (LON:VSVS) shares rose 2.8% on Friday after the company announced the acquisition of the Molten Metal Systems (MMS) business from Morgan Advanced Materials for an enterprise value of £92.7 million.

The stock remains down 12.7% this year.

The deal expands Vesuvius’s exposure to the faster-growing non-ferrous metals market and strengthens its presence in India, a key growth region. 

MMS supplies crucibles mainly to aluminium producers, with additional business in copper alloys and precious metals. It generated about £42 million in revenue in 2024 and earnings before interest, tax, depreciation and amortisation (EBITDA) of £8 million.

Under the agreement, Vesuvius will pay £20 million in cash for the non-Indian operations and issue new shares in its Indian subsidiary, Foseco India, to acquire a 75% stake in Morganite Crucible (India) Limited. 

Based on Thursday’s Foseco India share price, the equity portion is valued at £55.8 million. The deal is expected to be completed by early October.

Vesuvius said the transaction should be neutral to leverage and accretive to both return on sales and earnings per share in the first year, even before synergies. The company expects at least a 50% uplift in EBITDA through cost savings in manufacturing and overheads.

“This transaction will enable us to accelerate our growth in the non-ferrous market segment, and in India, both being core growth areas for us,” said chief executive Patrick André.