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Highlights

  • Vesuvius acquires Molten Metal Systems from Morgan Advanced Materials Plc for £92.7m (USD 121.5m), expanding in the non-ferrous market and India.

  • The deal will raise Foundry division non-ferrous revenue share from 21% to c.27% and deliver EBITDA uplift of at least 50% through cost synergies.

  • Acquisition structure leverages Foseco India Limited equity, with neutral impact on Group leverage and completion expected by early October 2025.

Vesuvius plc (LSE:VSVS) has announced an agreement to acquire the Molten Metal Systems (MMS) business from Morgan Advanced Materials Plc, marking a significant expansion into the non-ferrous metals market and the Indian manufacturing sector. The transaction, valued at an enterprise value of £92.7 million (USD 121.5 million), aligns with Vesuvius’ strategic objective of increasing its exposure to high-growth markets.

The acquisition includes the Indian-listed business Morganite Crucible (India) Limited (MCIL), in which Morgan currently holds a 75% stake, and the remaining worldwide MMS business. MMS operates as a global supplier of advanced crucibles, with approximately 50% of its revenue derived from aluminium producers and the rest largely from copper alloys and precious metals. In 2024, MMS generated turnover of around £42 million (USD 55 million) and EBITDA of £8 million (USD 10.5 million), with India accounting for 20% of revenue.

Under the terms of the deal, Vesuvius will pay £20 million (USD 26.2 million) in cash for the non-Indian MMS business, while the acquisition of Morgan’s 75% stake in MCIL will be settled through the issue of 1,150,800 new shares in Vesuvius’ listed Indian subsidiary, Foseco India Limited (FIL). The share issuance, valued at £55.8 million (USD 73.2 million) based on FIL’s market price as of 21 August 2025, reflects an exchange ratio of 0.274 FIL shares per MCIL share. On completion, FIL will hold 75% of MCIL, with Vesuvius retaining approximately 64% of FIL and Morgan taking about 15% of FIL on an enlarged basis.

The acquisition will increase the contribution of non-ferrous sales within Vesuvius’ Foundry division from 21% in 2024 to approximately 27% on a pro forma basis. Additionally, the group will expand its footprint in India, a market identified as a key driver of future growth. Management expects the transaction to deliver significant cost synergies, particularly in manufacturing and overheads, which are projected to lift EBITDA by at least 50%. These synergies are anticipated to make the deal immediately accretive to return-on-sales and earnings per share from the first year of ownership, even before cost savings are realised.

Vesuvius confirmed that the transaction will be neutral to Group leverage, balancing the limited cash element of the consideration with the issuance of new FIL equity and the cash-generative nature of MMS. The deal structure also triggers a mandatory tender offer by FIL for the remaining 25% public stake in MCIL, in accordance with India’s SEBI Takeover Regulations.

Completion of the transaction is expected by early October 2025, subject to customary approvals and conditions.