RHI Magnesita, a global supplier of high-grade refractory products, systems and solutions, completed the acquisition of the U.S.-based Resco Group for an enterprise value of $410 million.
The deal marks a major milestone for RHI Magnesita as it focuses on delivering an exceptional customer experience in the important North American region. The addition of Resco to the company’s North America operations will significantly increase local-for-local production, improving supply chain security for critical industries, such as cement, that underpin the economic health of the region.
Over the coming weeks and months, RHI Magnesita said it will focus on integrating teams, processes, technology and resources to ensure a seamless transition and maintain business continuity for the combined entity’s suppliers, customers and other stakeholders. As part of the integration of the networks, RHI Magnesita will also invest into Resco’s plants to further upgrade them, increase capacities, introduce new product lines and improve overall productivity.
“We are thrilled to enhance RHI Magnesita’s footprint in North America with the acquisition of Resco. We extend a warm welcome to our new colleagues and customers,” said Craig Powell, regional president of RHI Magnesita North America. “Combining our expertise in refractory solutions with Resco’s strengths in the petrochemical, cement and aluminum sectors, we aim to broaden our offerings through increased local production and improved supply chain security. This synergy will benefit both our existing and new customers as we set new industry standards and deliver a wider range of solutions. Together, we will build the future of manufacturing and foster a more sustainable world with the highest level of safety, one brick at a time.”
Mark Essig, CEO of Resco from 2022 until the sale, added, “This transaction marks an exciting new chapter for Resco and our employees. Over our 78-year history, we have built a strong reputation for delivering high-quality refractory products and technical solutions to our customers. Joining RHI Magnesita will allow us to further enhance our capabilities and expand our reach while maintaining our commitment to excellence in customer service. We are grateful for Balmoral Funds’ support during their ownership, which helped strengthen our market position, and we look forward to continuing our growth trajectory as part of RHI Magnesita’s global platform.”
