Vesuvius plc (parent company of AFS Corporate Member Foseco) recently entered into an agreement to acquire UK-based Molten Metal Systems from AFS Corporate Member Morgan Advanced Materials for an enterprise value of U.S. $108.7 million. The transaction structure involves $23.5 million in cash for the non-Indian business, while the 75% stake in Indian-listed Morganite Crucible (India) Limited will be acquired through the issuance of 1,150,800 new shares by Vesuvius’s Indian subsidiary, Foseco India.   

Vesuvius expects the acquisition to expand the company’s foundry business into the faster-growing non-ferrous market segment. They estimate the move has the potential to increase the company’s share of revenues from non-ferrous sales from 21% to 27%. In addition to providing cost synergies, the company expects the acquisition will increase its presence in the Indian market. The deal is expected to be completed in October.