RHI Magnesita India Limited on Wednesday said it has acquired the refractory business of Hi-Tech for Rs 621 crore in an all-cash deal.
RHI Magnesita India Ltd is the leading global supplier of high-grade refractory products used by major industries, including steel, cement, non-ferrous metals and glass.
In a BSE filing, the company said it "has executed...with Hi-Tech Chemicals Limited (Hi-Tech) vide agreement for the acquisition of the refractory business of Hi-Tech by way of a slump sale on a going concern basis for a cash consideration of Rs 621 crore".
On the objective of the acquisition, RHI Magnesita India said it will strengthen and enlarge its offering to enhance the company's position in the domestic and international flow-control refractory business.
Speaking to PTI over the phone, Parmod Sagar, MD & CEO of RHI Magnesita India said, "This acquisition is pursuant to our strategic inorganic growth strategy in India. It testifies to our strong commitment to increasing our production footprint in India to serve our customers more efficiently".
It is a cash-only acquisition and the process will complete in the next few months, he added.
According to the RHI Magnesita, Hi-Tech posted a turnover of Rs 270.2 crore in the financial year 2021-2022 against Rs 220.8 crore in the preceding fiscal.
Hi-Tech's refractory business is present in India and 6 other countries across Europe, Africa and Asia.
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