Resco Products to be Acquired by RHI Magnesita

2 April 2024

Resco Products, Inc. a portfolio company of Balmoral Funds LLC 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.