RHI Magnesita buys Germany's Dalmia GSB Refractories for €13m

RHI Magnesita on Wednesday said it had bought German firm Dalmia GSB Refractories for €13m in cash.

Bochum-based DGSB supplies monolithic lances and other precast products to European steel customers for use in the desulphurisation and homogenisation of molten steel. It is currently a subsidiary of the Dalmia Bharat Group.

DGSB recorded profit before tax of €1.7m in the year to March 31, 2022. Net debt of approximately €10m will be consolidated by RHI after the deal, which is expected to complete in the first half of this year.

“The acquisition will enable RHI Magnesita to widen its customer offering in Europe, where monolithic lances are a complementary addition to the group's existing product range,” the company said.

“Attractive potential synergies are expected to be realised through the inclusion of the additional products within the group's heat management solutions offering and from cross-selling, procurement and logistics benefits.”

Reporting by Frank Prenesti for Sharecast.com