RHI Magnesita: Strengthening North American Presence with Resco Group Acquisition

Deal News | Feb 03, 2025 | Balmoral Funds LLC

RHI Magnesita: Strengthening North American Presence with Resco Group Acquisition

RHI Magnesita, a global leader in refractory products, has announced its acquisition of US-based Resco Group from an affiliate of Balmoral Funds LLC for an enterprise value of $410 million. The acquisition marks RHI Magnesita's significant investment in the North American market since its merger in 2017. By acquiring Resco Group, RHI Magnesita aims to bolster its local production, enhance supply chain security, and broaden its product portfolio within North America. This strategic addition will enhance supply security, improve responsiveness, and introduce sustainability advancements and innovation to customers. Over the upcoming months, RHI Magnesita plans to integrate Resco's operations, focusing on team collaboration, technology enhancement, and productivity improvement. Key figures such as RHI Magnesita's CEO Stefan Borgas and Resco's CEO Mark Essig emphasize the positive impact and potential growth resulting from this union.

Sectors

  • Refractory Materials Industry
  • Private Equity

Geography

  • United States – Resco Group, the acquired company, is based in the US, making this a significant geographic focus of the acquisition.
  • North America – The acquisition is strategically significant for RHI Magnesita’s expansion into the North American region, enhancing its market presence there.

Industry

  • Refractory Materials Industry – The article focuses on the acquisition of Resco Group, a producer of refractory products. Refractory materials are key to high-temperature industrial processes, and this acquisition enhances RHI Magnesita's offerings in this sector.
  • Private Equity – Balmoral Funds LLC, a private equity firm, is the selling entity in this transaction, highlighting the role of private equity in facilitating corporate transactions and transformations.

Financials

  • $410 million – The enterprise value of the acquisition deal for Resco Group.

Participants

NameRoleTypeDescription
RHI MagnesitaBidding CompanyCompanyA leading global supplier of high-grade refractory products and systems.
Resco GroupTarget CompanyCompanyA US-based producer of shaped and unshaped refractories.
Balmoral Funds LLCSelling CompanyCompanyA Los Angeles-based private equity firm that owned Resco Group before the acquisition.
Stefan BorgasCEO of RHI MagnesitaPersonThe CEO of RHI Magnesita, overseeing the strategic acquisition.
Mark EssigCEO of Resco GroupPersonCEO of Resco Group at the time of the acquisition.