- Vesuvius
- 22 August 2025 09:38:03
Source: Sharecast
The deal will increase Vesuvius's foundry business exposure to the faster-growing non-ferrous market, expanding the foundry division's share of revenue from non-ferrous sales from 21% to an estimated 27%.
MMS, which makes crucibles, foundry products, degassing rotors and specialty furnaces, will also give Vesuvius the ability to increase its manufacturing footprint and sales exposure to India, which it sees as a "core growth market".
Under the terms of the deal, Vesuvius will take over Morgan's 75% stake in India-listed business Morganite Crucible – satisfied by the issue of 1.15m shares of Indian subsidiary Foseco India worth £55.8m – as well as the remaining MMS operations for £20m in cash.
Vesuvius boss Patrick André said MMS is "highly complementary to our existing business" and will bolster the foundry division's profitability due to significant cost synergies.
"[The acquisition] is also structured in a cash-efficient way, neutral to gearing and will support our objective of deleveraging in the coming months," he said.
Vesuvius shares were up 1.4% at 367.2p by 0925, while Morgan Advanced Materials gained 4.4% to 216.1p.