Resco Products to be Acquired by RHI Magnesita
March 29 2024 - 6:11PM
Business Wire
Resco Products, Inc. (“Resco”), a portfolio company of Balmoral
Funds LLC (“Balmoral”), today announced that it has entered into a
definitive agreement to be acquired by RHI Magnesita (“RHIM”) for
an enterprise value of up to $430 million. RHIM, which is
headquartered in Austria and listed on the London Stock Exchange,
is a leading global supplier of high-grade refractory products,
systems and solutions that are critical for high-temperature
processes in a wide range of industries, including steel, cement,
non-ferrous metals and glass.
The combined company will deliver significant customer benefits,
including an expanded North American footprint with 15 production
sites across the U.S., Canada and Mexico, along with comprehensive
combined basic and non-basic product portfolios. Resco customers
will also benefit from RHIM’s vertically-integrated business model,
creating a shorter, more resilient and more secure supply chain. As
part of RHIM, Resco will have access to enhanced resources to
continue investing in technology and innovation, enhancing its
product portfolio and making ongoing circular economy advancements
to support the industry’s ambitious sustainability efforts.
“This transaction is a testament to our successful
transformation over the past two years, all underpinned by a
safety-first culture. Our focus and disciplined execution – coupled
with operational improvements to increase manufacturing
reliability, uptime and output – have driven significant tangible
benefits, including all-time low incident rates, profitability
improvement and customer growth,” said Mark G. Essig, Resco CEO.
“We are confident that RHIM shares our core values, including a
deep-rooted commitment to safety, quality and innovation. As we
enter this next chapter, joining forces with RHIM will enable us to
accelerate this progress and drive our next phase of growth.”
“We are grateful to Mark, Chairman of the Board Dr. Kevin
Handerhan and the entire Resco team for their terrific partnership
over the past two years,” said Robin Nourmand, a Managing Director
at Balmoral. “Working together, we significantly improved Resco’s
operations, ultimately transforming the business and realizing a
successful outcome for this investment. Looking ahead, we are
confident that, together, RHIM and Resco will continue to deliver
the high-quality products and services for which they are known and
continue to meet the evolving needs of customers around the world.
As gratifying as this success is for the company, its employees,
customers and stakeholders, the dramatic improvement in
environmental, health and safety culture and metrics leaves a
lasting legacy that we are all most proud of.”
The transaction is expected to close in the second half of 2024,
subject to customary closing conditions and regulatory
approvals.
Jefferies LLC served as exclusive financial advisor to Resco.
Vedder Price served as Resco’s legal advisor.
About Resco Products
Resco Products, Inc., based in Pittsburgh, PA, is a refractory
manufacturer that services many diverse end markets, including
steel and cement production and petrochemical processing. Resco has
been in the refractory industry for over 75 years and operates 11
facilities across North America and the United Kingdom. Resco’s
distinct footprint enables it to service customers quickly and
efficiently. Resco is a product leader within the refractory
industry, creating enhanced products that reduce customers’
downtime and increase productivity.
About Balmoral Funds
Balmoral is a Los Angeles, CA based private equity firm, founded
in 2005, with approximately $1.5 billion of assets under
management. Balmoral partners with talented, aligned and committed
management teams to invest in and revitalize companies. Balmoral
typically invests in companies that have revenues between $30 to
$400 million and require equity investments of $20 to $125 million
but is capable of executing larger transactions.
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Media Jenny Gore/Jeff Huber FGS Global
resco@fgsglobal.com