Ferroglobe completes the acquisition of Glencore’s European Manganese Plants in France and Norway, Doubling its Global Mang...
February 01 2018 - 9:44AM
Ferroglobe PLC (NASDAQ:GSM) ("Ferroglobe" or the "Company")
announced today that it has successfully completed the acquisition
from a wholly-owned subsidiary of Glencore International
AG ("Glencore") of a 100% interest in Glencore's manganese
alloys plants in Mo i Rana (Norway) and Dunkirk (France), after
receiving the necessary regulatory approvals in France, Germany and
Poland. The new subsidiaries will be renamed as Ferroglobe Mangan
Norge and Ferroglobe Manganèse France. Ferroglobe has completed the
acquisition through its wholly-owned subsidiary Grupo
FerroAtlántica.
Simultaneously with the acquisition, Glencore
and Ferroglobe have entered into exclusive agency
arrangements for the marketing of Ferroglobe's manganese alloys
worldwide and the procurement of manganese ores to supply
Ferroglobe's plants, in both cases for a period of ten years.
Ferroglobe Executive Chairman, Javier López Madrid, commented
“The acquisition of the Glencore plants in France and Norway
represents a unique opportunity for Ferroglobe to become one of the
world's largest producers with over half a million tons of sales of
manganese alloys. The transaction will deliver solid growth to our
existing platform and will provide significant advantages to our
customers as Ferroglobe will be better positioned to serve multiple
locations in a more agile manner.”
The acquisition price for the two facilities included an
up-front payment satisfied on closing plus an earn-out payment,
payable over eight and a half years, based on the annual
performance of each of the acquired plants. Ferroglobe CEO, Pedro
Larrea, added, “The structure of the deal is such that it is
immediately accretive for Ferroglobe and mutually beneficial in the
marketing and procurement agreements.”
About Ferroglobe
Ferroglobe PLC is one of the world's largest producers of
silicon metal and silicon- and manganese-based alloys, serving a
customer base across the globe in dynamic and fast-growing end
markets, such as solar, automotive, consumer products, construction
and energy. The Company is headquartered in London.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of U.S. securities laws. Forward-looking
statements are not historical facts but are based on certain
assumptions of management and describe the Company's future plans,
strategies and expectations. Forward-looking statements often use
forward-looking terminology, including words such as "anticipate",
"believe", "could", "estimate", "expect", "forecast", "guidance",
"intends", "likely", "may", "plan", "potential", "predicts",
"seek", "will" and words of similar meaning or the negative
thereof.
Forward-looking statements contained in this press release are
based on information presently available to the Company and
assumptions that we believe to be reasonable, but are inherently
uncertain. As a result, Ferroglobe's actual results,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements, which are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond the Company's control.
Forward-looking financial information and other metrics
presented herein represent the Company's goals and are not intended
as guidance or projections for the periods presented herein or any
future periods.
All information in this press release is as of the date of its
release. Ferroglobe does not undertake any obligation to
update publicly any of the forward-looking statements contained
herein to reflect new information, events or circumstances arising
after the date of this press release. You should not place undue
reliance on any forward-looking statements, which are made only as
of the date of this press release.
INVESTOR CONTACT:
Ferroglobe PLC
Joe Ragan, US: +1 917 209 8581, UK: +44 (0) 7827 227
688
Chief Financial Officer
Email: jragan@ferroglobe.com
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